"We believe AT&T (T) is overpaying for Leap’s (LEAP) spectrum," says BMO's Kevin Manning,...

"We believe AT&T (T) is overpaying for Leap’s (LEAP) spectrum," says BMO's Kevin Manning, expressing a common view. He estimates AT&T is paying $5.25B for Leap after factoring debt and lease obligations, or $2.31/MHz/POP. That's well above the prices attached to recent spectrum deals (I, II), something attributed to a desire to keep Leap out of T-Mobile's (TMUS) hands. Much of Leap's spectrum resides in the AWS band, where T-Mobile has a huge presence. Though few analysts expect a higher bid, Leap closed 13% above AT&T's offer price, in part due to expected spectrum proceeds. One unanswered question: What will happen to AT&T's AIO prepaid brand, given the carrier's plans to support Leap's Cricket brand? (AT&T/Leap: I, II)

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Comments (4)
  • yblarrr
    , contributor
    Comments (1207) | Send Message
    Some times it pays to keep the competition at bay.
    15 Jul 2013, 07:31 PM Reply Like
  • glf4mny
    , contributor
    Comments (464) | Send Message
    Kevin Manning with BMO says.....I had a BM, OMG today but I didn't assocaite it with anything that AT&T was doing.
    15 Jul 2013, 08:28 PM Reply Like
  • slyolefox
    , contributor
    Comments (9) | Send Message
    Would like to know who it was that made over $1 Million trading in
    options on Leap before the disclosure of this deal.
    15 Jul 2013, 08:42 PM Reply Like
  • skibimamex
    , contributor
    Comments (592) | Send Message
    a guy that will obviously be working on license plates at club fed...for his total lack of common sense in trading on insider information. just wondering which side will end up with the embarrassing disclosure of who spilled the beans during pillow talk.
    16 Jul 2013, 12:07 AM Reply Like
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