Reports in the US indicate that mobile operator Leap Wireless has appointed Goldman Sachs and Morgan Stanley as advisers on a possible sale.
The Wall Street Journal first reported that the low-cost mobile operator had appointed the two banks to advise on…
Reports in the US indicate that mobile operator Leap Wireless has appointed Goldman Sachs and Morgan Stanley as advisers on a possible sale.
The Wall Street Journal first reported that the low-cost mobile operator had appointed the two banks to advise on a potential sale earlier this week, and since then it has been reported that the telco has been in talks with the likes of Verizon Wireless, MetroPCS, Vodafone, America Movil, Deutsche Telekom’s T-Mobile USA and AT&T, causing shares in Leap to rise as much as 13.1%.
For much of 2009, there was speculation as to what the future of Leap Wireless might hold, and there has for some time been talk that it could merge with MetroPCS, although MetroPCS has now itself become a reported takeover target. MetroPCS and Leap would make a good and obvious match say many, and an acquisition of Leap by one of the larger operators could face many regulatory hindrances, as they have significant wireless coverage already.
Leap Wireless has an approximate US$1bn market value and in 2007 turned down a US$5.5bn bid from MetroPCS.
