US wireless carrier Leap Wireless has settled a dispute regarding the Leap management setup just ahead of the company’s AGM today (Thursday, 28 July 2011).
In a statement, Leap said that the two companies had come to an agreement under which Pentwater…
US wireless carrier Leap Wireless has settled a dispute regarding the Leap management setup just ahead of the company’s AGM today (Thursday, 28 July 2011).
In a statement, Leap said that the two companies had come to an agreement under which Pentwater will withdraw its selected nominees for the company’s board and has promised to vote in favour of Leap’s preferred candidates.
But after the AGM, Leap will appoint two of the candidates put forward by Pentwater, Richard Roscitt and Robert Switz, as directors in the company.
One of Leap’s nominees, Paula Kruger, has told the company that she will not stand for election at the AGM.
Pentwater holds a 5% stake in Leap Wireless, which operates under the brand name Cricket Communications.
Leap’s CEO, Doug Hutcheson, said: “Over the past year, Leap has driven dramatic improvements in operating performance and is pursuing additional initiatives to continue its momentum.
“This agreement provides a constructive solution that allows us to maintain our focus on continuing to strengthen and build the company to create value for our stockholders.”
Morgan Stanley was the financial adviser for Leap Wireless, while its legal adviser was Wachtell, Lipton, Rosen & Katz.
Pentwater was advised by law firm Nelson Mullens.
In March, Pentwater accused Leap of “a series of mistakes and missteps that have resulted in the destruction of shareholder value”.
It nominated three independent directors to the company, claiming that they would “better align the board with the interests of Leap’s shareholders”.
Specifically, Pentwater said at the time that it had been a mistake for Leap not to merge with the rival mobile operator MetroPCS in 2007.
