MetroPCS makes offer for Leap

5 Sep 2007

The US pre-paid cellular provider MetroPCS has made a USD5.5 billion takeover offer for rival operator Leap Wireless International. MetroPCS also says it will assume around USD2 billion of Leap’s debt. Its offer of USD77.89 per share is a 7.4% premium on Leap’s closing price at the end of last week, although financial analysts in the US are expecting shareholders to hold out for a higher price, Bloomberg reports. MetroPCS had just under 3.55 million subscribers at the end of June, while Leap claimed 2.67 million; the combined entity would become the sixth largest cellco in the US, with operations in all 200 top metro markets nationwide, leaving it better placed to compete with the larger operators such as AT&T, Verizon and Sprint.