AT&T To Acquire Leap Wireless In $1.19B Transaction
Contributor Since 2013
Originally published at www.seclive.com
Filing in Focus: AT&T 8-K, July 12, 2013
AT&T (T) has entered an agreement through which it will acquire Leap Wireless (LEAP) in a $1.19B cash transaction. AT&T will acquire all Leap stock for $15.00 per share, an 88% premium of the company's closing price of $7.98 on Friday. Wireless providers are in a rush to purchase additional wireless spectrum as bandwidth has become a concern for companies due to the increased bandwidth demand from smartphones and tablets. One of the most recent examples of this is detailed in Filings Digest June 28, 2013, where T-Mobile (TMUS) acquired Advanced Wireless for $308M cash. AT&T will acquire not only the additional spectrum but an additional five million subscribers as well as the Cricket brand that covers approximately 96 million people. AT&T plans to expand its 4G LTE network and leverage Leap's resources to better compete in the low-cost prepaid service.
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