Leap Wireless Gets Merger Proposal From MetroPCS

Texas-based MetroPCS Communications, a provider of wireless communications services, said this morning that it has proposed a strategic, stock-for-stock, tax-free merger with San Diego's Leap Wireless. MetroPCS said it is looking to pay approximately $5.5B for Leap Wireless, in a stock-for-stock exchange of 2.75 shares of its stock for each share of Leap common stock. Dallas, Texas-based MetroPCS is a provider of flat-rate communications services based on prepaid cell phones. MetroPCS said it believes the merger would provide the companies with "meaningful operating cost savings through a combination of market-level operating efficiencies and corporate overhead reductions."