Leap and MetroPCS merger could resurface next year

18 Dec 2007

A report from the Wall Street Journal is suggesting that MetroPCS’s failed move to agree a merger with rival cellco Leap Wireless International could still be on the cards with Leap’s share price having plummeted since the offer was made. MetroPCS made its USD75.05 per share offer back in September but the Leap board rejected it, claiming the price was too low; Leap shares were valued at around USD72.50 at the time but have since fallen to less than half that on the back of a disappointing set of 3Q 2007 financial results. Under FCC rules, the two cellcos are now unable to discuss the merger until after the government’s 700MHz spectrum sale has completed next year, though the Wall Street Journal says that the chances of the deal being resurrected are high.