July 16 (Bloomberg) -- Leap Wireless International Inc., which sells the Cricket prepaid mobile-phone service, was sued by a shareholder contending the company is undervalued in a $1.2 billion buyout offer from AT&T Inc.
Leap directors set the $15-a-share price in bad faith through an unfair process, the Booth Family Trust said in a Delaware Chancery Court lawsuit made public today.
The transaction, involving an 88 percent premium at the time, “fails to maximize shareholder value” considering “Leap’s prospects for future growth,” Booth lawyers wrote in court papers.
Leap, based in San Diego, and AT&T, based in Dallas, said in a July 12 statement that they would combine to expand service for AT&T, the No. 2 U.S. wireless carrier.
A Leap spokesman, Greg Lund, said the company had no comment on the lawsuit.
The case is Booth Family Trust v. Leap, CA8730, Delaware Chancery Court (Wilmington).
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