Leap Wireless in the market to seek a buyer

The latest events of Verizon and AT&T slashing phone plan prices may have lead to cellular provider Leap Wireless International to seek out a buyer. Leap Wireless has hired advisers and formed a special board committee that’s responsible to look into selling the company – or even suffice with a merger with a rival. Leap, which sells its service under the Cricket brand has roughly 4.7 million customers and recently hired Goldman Sachs Group – they are there to advise the company as it “reassess its alternatives and checks its options out there right now.” One of the most logical moves that some bankers suggest is the consideration of merging with rival MetroPCS Communications – Leap actually spurned an unsolicited all-stock offer from MetroPCS initially valued at $5.5 billion back in 2007; which is about five times Leap’s current market value. It’s still not clear if they are in talks just yet – it seems like Leap is trying to woe other bidders to get MetroPCS to pay a higher price for any potential bid. Forming with then would take a huge portion of the overall market share and potentially stand some ground as the major wireless providers continue to slash prices – making them a bit more attractive for consumers.
 
source: The Wall Street Journal