Boston, MA 09\/26\/2013 (wallstreetpr) –\u00a0Leap Wireless International, Inc. (NASDAQ:LEAP) had announced that it has agreed to a $1.2 billion merger offer by\u00a0AT&T Inc. (NYSE:T) on July12. The completion of the deal would give AT&T complete control over Leap\u2019s \u201cwireless properties and licenses\u201d including close to 5 million of its customer base. For each outstanding share of LEAP (total of 77.9 million shares outstanding), AT&T was willing to pay $15 in cash. Leap share holders would also be entitled to additional \u201ccontingent value right\u201d in lieu of proceeds which are expected from sale of Leap Spectrum allocation in Chicago post the merger. This offer translated to an 87% premium on the share price of LEAP which was trading at $7.98 as of close of business on July 12.<\/p>\n
On September 18, company announced that it will be holding a meeting at Denver on Oct. 24 for its share holders to decide if the deal has their buy in to go through. As per the terms of the merger agreement, the deal needs to be consummated before July 11\u201914. Both companies have the right to either withdraw or terminate this agreement under certain conditions which have been specified in the document.<\/p>\n
In the event of share holder of Leap deciding to veto the recommendation of their board favouring the merger, then company would be liable to pay anywhere between $46 million to $71 million to AT&T as termination fee. \u00a0Leap\u2019s wireless network coverage services close to 96 million people across 35 states of United States. Leap provides its customers both 3G and 4G network coverage.<\/p>\n
In a related development, AT & T announced on September 25, that it has entered into an agreement with FON which provides Wi-Fi network connectivity where by AT&T customers would be able to avail of the FON\u2019s Wi-Fi zones when they are travelling abroad.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 09\/26\/2013 (wallstreetpr) –\u00a0Leap Wireless International, Inc. (NASDAQ:LEAP) had announced that it has agreed to a $1.2 billion merger offer by\u00a0AT&T Inc. (NYSE:T) on […]<\/p>\n","protected":false},"author":32,"featured_media":9127,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[1648,3051,3052,3049,3050,1104],"stock_ticker":[],"class_list":["post-9126","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-att-inc-nyset","tag-att-inc","tag-leap-wireless-international-inc","tag-leap-wireless-international-inc-nasdaqleap","tag-nasdaqleap","tag-nyset","entry"],"acf":[],"yoast_head":"\n