MetroPCS Drops Bid for Leap Wireless BRIEFING: NEW YORK

Nov 02, 09:52 AM

Current Headlines: MetroPCS Communications, the largest pay-as-you-go mobile-phone service in the United States, withdrew its offer to buy Leap Wireless International, a deal that would have combined the fastest- growing U.S. wireless companies.

MetroPCS was unable to engage in "meaningful" negotiations with Leap, the company, based in Dallas, said in a statement.

The purchase would have nearly doubled MetroPCS's customers, which numbered 3.6 million at the end of September, and would have expanded its network to help it compete with larger rivals. The Leap chief executive, Doug Hutcheson, said in September that he saw "attractive potential" in a combination.

Leap, based in San Diego, rejected the all-stock offer in September, saying the price was too low. MetroPCS offered 2.75 of its shares for every share of Leap. MetroPCS said it "believes strongly in its stand-alone prospects" and will continue to expand into new markets.

Originally published by Bloomberg.

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