Investors of Leap Wireless International Inc would be meeting on October 24 to decide on the takeover by AT&T Inc. Leap Wireless, a prepaid wireless operator, had earlier agreed to be bought by AT&T for USD 1.2 billion. According to a company filing, the meeting would be held in Denver and would start at 8 in the morning.
Leap said it would pay the second largest wireless carrier in the US anywhere from USD 46.3 million to USD 71.2 million should the deal not push through. The amount for the termination fee would depend on the circumstances that caused the transaction to fail.
AT&T had offered to purchase Leap at a premium of more than 88% over its stock price. The agreed upon price per share for the acquisition was USD 15 in cash. Bloomberg reported that the purchase would enable AT&T to have access to prepaid or pay-as-you-go clients. Leap would also enhance AT&T's existing network.
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