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Nov. 3, 2007

MetroPCS has publicly announced that it is backing out of its acquisition bid for Leap Wireless.

Less than two months ago, MetroPCS offered Leap shareholders 2.75 shares of MetroPCS for every share of Leap they already owned.

Overall, Metro's acquisition bid totaled a little under $4.71 billion.

The board of MetroPCS said it has withdrawn its offer because it "has not been able to engage Leap in meaningful negotiations" about the proposed acquisition.

For its part, Leap Wireless responded by saying it had already turned down the proposed acquisition, citing the board's announcement that the offer was "totally inadequate."

However, Leap did say in a statement that it remains "open to substantive discussions concerning a strategic combination of the two carriers."

Overall, both wireless carriers offer prepaid services for non-contract customers.

The two companies have been thought to be a good fit because of similarities in their service offerings, and without too many overlapping market areas or segments.

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Source: Wireless Week