Boston, MA 07/22/2013 (wallstreetpr) – The leading player in the wireless communications industry, AT&T Inc. (NYSE:T) had recently been looking out to acquire Leap Wireless International, which had been commented to be a move that is plainly aimed at acquiring more spectrum for the parent company. Though the reports had declared that the aggregate value for the acquisition deal is fixed at $1.2 billion which translates to $15 per share, there had been further reports that the total bill of the deal would easily climb to around $5 billion. This is primarily due to the fact that LEAP presently holds net debt at $2.8 billion along with many other contractual obligations.
However, there had been serious concerns on whether the acquisition deal would really turn out to be profitable to AT&T Inc, especially due to the fact that the 3G network of LEAP is presently designed based on completely different and incompatible technology of CDMA, whereas all the networks of AT&T are designed using the technologies of GSM and HSPA networks. All such operational difficulties are presenting huge concerns to the investors towards whether this acquisition deal is really necessary at all. Further, the market is also concerned that another player in the industry, Verizon Communications Inc. had proved to be successful in securing ton of spectrum deals for a minimum value of $3.6 billion.
Shares of AT&T Inc. (NYSE:T) had moved up to gain 0.20% on Friday and thereby closed at $35.81 per share for the day. The company had reported intraday prices ranging from as low as $35.52 to as high as $35.85 on the day. The 52 week low price for the stock is at $32.71 and 52 week high price is at $39.00 per share.
The company holds 5.42 billion shares outstanding and 55% of institutional ownership of capital with a market cap of $194.19 billion. On Friday, there had been a trading volume of 21.16 million shares of the company while the average is at 26.00 million shares per day.
