Analyst: Is Leap Wireless next for T-Mobile or Dish?
According to Macquarie Capital analyst Kevin Smithen, Leap Wireless could be the next prize to be battled over in the wireless industry. Following Dish's inability to pick up spectrum to help it start a new gig as a wireless carrier, CEO Charles Ergen could turn his attention to Leap. Smithen also notes that the rise in T-Mobile's shares from $15 to $24 give it a valuable currency to use to also make a play for the pre-paid carrier which is the parent company of Cricket Wireless.
Smithen says that Leap is controlled by a few holders which could help be a catalyst to a deal, but also could make it harder to get done. The analyst says that to get done, a bid would have to be at least $10 a share to have a chance. The stock closed on Monday at $7.35. With T-Mobile beginning to move into the same regions covered by Leap in the second half of this year, it could cause the latter to more easily embrace a deal.
Leap closed out Q1 with 5,203,747 accounts, a drop of 16% year over year.
source: IBD via TmoNews
source: IBD via TmoNews
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