Leap Wireless Says It's 'Reviewing' MetroPCS' $5.5 Billion Offer - InformationWeek

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Leap Wireless Says It's 'Reviewing' MetroPCS' $5.5 Billion Offer

If consummated, a merger of the two no-contract mobile phone service providers would create the country's fifth nationwide wireless provider.

Leap Wireless International is reviewing a bid by MetroPCS Communications to acquire Leap in a deal worth about $5.5 billion However, Leap's chief financial officer Amin Khalifa won't participate in the deliberations because he has resigned.

If consummated, a merger of the two no-contract mobile phone service providers would create the country's fifth nationwide wireless provider.

"Leap's board of directors will make a determination regarding the proposal following completion of its review," Leap said in a release. Leap said Khalifa had "resigned from the company to pursue other interests."

Leap added that its CEO and president Doug Hutcheson, who had previously served as the firm's CFO, would assume additional duties as interim CFO.

Leap said Goldman, Sachs & Co. and Jeffrey Williams & Co. LLC are serving as financial advisors during the review. Leap's legal advisors are Wachtell, Lipton, Rosen & Katz, and Latham & Watkins LLP.

The two firms have talked merger for several months. Leap primarily serves rural subscribers while MetroPCS has a largely urban audience.

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