MetroPCS Withdraws Bid for Leap

DALLAS — MetroPCS Communications Inc., a wireless communication services provider, said Thursday it is withdrawing its $4.7 billion bid for Leap Wireless International Inc.

MetroPCS publicly offered Leap shareholders in September 2.75 shares of MetroPCS for every share of Leap they own.

In withdrawing the offer, MetroPCS said it "has not been able to engage Leap in meaningful negotiations" about a deal.

Leap Wireless said MetroPCS' withdrawal of its bid Thursday "became moot in any case on Sept. 16 when our board rejected it as inadequate." In a statement, Leap officials said they remain "open to substantive discussions concerning a strategic combination" between the two companies.

Such harsh rhetoric has characterized this failed merger since Leap rejected the initial proposal, saying it didn't account for Leap's growth possibilities and its investment in a new broadband product.

When MetroPCS launched the bid, analysts expected the company to raise it, especially after Leap President S. Douglas Hutcheson called it "financially inadequate." It represented a premium of just 3 percent over Leap's stock price.

The acrimony convinced some analysts that the companies were too far apart in price to find common ground.

Both MetroPCS and Leap provide discount wireless services and allow customers to pay up front without having to sign a contract. But they have few overlapping markets.

Shares of MetroPCS rose were down $2.46 or 10.9 percent, to $20.04 in afternoon trading Thursday. Shares of Leap fell $4.12, or 5.8 percent, to $67.19.

Back To Top