Deals
AT&T to Buy Leap for $1.2 Billion to Pile Up More Airwave Assets
This article is for subscribers only.
AT&T Inc., the second-largest U.S. wireless carrier, agreed to buy Leap Wireless International Inc. for $1.2 billion, giving the company 5 million customers, more airwaves and a larger piece of the pay-as-you-go market.
Under the deal, Leap shareholders also will get the right to proceeds from the sale of Leap’s 700-megahertz spectrum in Chicago, which was bought for $204 million last year, according to a statement. The offer of $15 a share in cash represents an 88 percent premium over Leap’s closing price of $7.98 yesterday. San Diego-based Leap also has $2.8 billion in net debt.