Earlier this month, MetroPCS made a $5 billion offer to Leap Wireless for an acquisition. It would have bolstered the public image of both companies and would give more options to wireless consumers. Alas though, the deal is no more. Leap Wireless has turned down the MetroPCS offer, citing that the proposed buyout was not in the company’s best interests.
Though MetroPCS may be a little more well-known, Leap says that its business is crummy. Leap CEO S. Douglas Hutcheson had the following to say about the rejection:
“Therefore, given our broad and repeated efforts, we were surprised by your sudden offer and the fact that you decided to make the offer publicly before even attempting to enter into substantive discussions with us,” Hutcheson said in the letter. “We can only conclude that you recognize Leap’s compelling long-term growth prospects and that your aggressive approach is intended to try to opportunistically capture a disproportionate share of this value for your shareholders prior to an increase in our relative valuation.”
Sounds like the man’s mind is made up. Guess MetroPCS will have to stick with its own crummy service for the time being.
Leap Wireless rejects MetroPCS offer [SlashPhone]