Left Alone, Leap Wireless International, Inc. (LEAP) Needed a Buyer — Badly

In July, Leap Wireless International, Inc. (NASDAQ:LEAP) negotiated with Stephenson for “several hours,” selling the executive on the value of an acquisition. Purchasing Leap would significantly boost AT&T Inc. (NYSE:T)’s presence in the pre-paid market, generate cost-saving synergies, and build Ma Bell’s spectrum position. Leap also had valuable tax assets. Stephenson agreed to a substantially higher $15 per share offer — 58% higher than the original offer.

A week later, the deal was announced to the world.

There will be an answer
Following years of searching for a buyer, Leap Wireless International, Inc. (NASDAQ:LEAP) finally found one in AT&T Inc. (NYSE:T). The final hours at the negotiating table proved critical, earning Leap shareholders an additional 58% premium. Leap is finally being put out of its misery.

Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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