MetroPCs Bid For Leap Falls

Withdraws $4.7B offer for rival
By Peter Fearon,  Newser Staff
Posted Nov 1, 2007 10:09 PM CDT
Stewart Douglas "Doug" Hutcheson, President and CEO of Leap Wireless International, Inc.rings The NASDAQ Stock Market Opening Bell Wednesday, June 29, 2005 at NASDAQ's MarketSite in New York City. MetroPCs...   (NASDAQ)
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(Newser) – The proposed multi-billion dollar merger of rival discount wireless service providers has collapsed amid acrimony. AP reports MetroPCS Communications is withdrawing it's $4.7 Billion bid for Leap Wireless International. The Leap board had rejected the bid as "financially inadequate." Both companies allow customers to pay up front for wireless service without a contract.  

The bid represents only a three per cent premium over Leap's current share price. MetroPCS had been expected to increase the offer, but a statement said the company "has not been able to engage Leap in meaningful negotiations." Leap officials say they are still "open to substantive discussions concerning a strategic combination."