AT&T Leap Wireless acquisition gets stockholder approval

Nov 1, 2013
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AT&T Leap Wireless acquisition gets stockholder approval

AT&T announced back in July they were moving forward to acquire Leap Wireless. This could bring Cricket Wireless under the AT&T wing and the purchase price was said to be more than $1 billion. Specifically, $1.19 billion. But while the plans were spelled out, that didn't mean the deal was finalized.

At the time a source from The Wall Street Journal was stating the odds were "pretty good" the deal would go through, however there are still lots of required steps in the process. There is the regulatory approvals from the Federal Communications Commission (FCC) and the US Department of Justice. Not to mention, the stockholder approvals.

The regulatory approvals have yet to come in, but as of today it looks like the stockholder approval has arrived. And not only has it arrived, but it appears the vote was near 100% in favor. According to details coming from Leap Wireless, "more than 99% of the votes cast at Wednesday's special meeting were voted in favor of the proposed merger agreement." To further that, 78% of the votes cast were in favor of the advisory proposal regarding executive compensation.

"We are pleased with the outcome of yesterday's vote and thank all of our stockholders for their support," said Doug Hutcheson, Leap's chief executive officer.  "Stockholder approval is an important milestone on our path to completing the merger with AT&T.  I'd like to thank the dedicated representatives from both companies who are working hard to complete the transaction."

Anyway, additional details that were revealed back in July touched on how AT&T would be paying $15 per share. That, for those curious, was almost double the current stock price, which was $7.98 per share. AT&T has been considered a top four carrier and Leap Wireless was said to have been the sixth largest with more than 5 million subscribers.

Assuming the process clears the necessary regulatory hurdles, AT&T will transition the Leap Wireless customers and also take over the wireless spectrum, retail stores and the debt, which was said to have been closing in on $3 billion.

VIA: Android Community

SOURCE: Leap Wireless


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