Leap Rises on Report of Deal Talks With MetroPCS, T-Mobile
Leap Wireless International Inc. (LEAP), the San Diego-based pay-as-you-go wireless carrier, rose 5.5 percent on a report that it held talks with MetroPCS Communications Inc. about a three-way deal with T-Mobile USA.
MetroPCS, which announced plans last month to merge with Deutsche Telekom AG’s T-Mobile division, disclosed in a Nov. 16 filing that it previously discussed a deal involving a third party as well. A person familiar with the situation identified that company as Leap, Bloomberg reported today.
The shares rose to $6.30 at the close in New York. The increase pared Leap’s year-to-date decline to 32 percent.
Leap, one of MetroPCS’s biggest competitors in the prepaid market, has been struggling to hang on to customers as its rivals upgrade to speedier networks that use a technology called long-term evolution, or LTE. The company lost about 269,000 users last quarter.
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