Leap Wireless International, Inc. (NASDAQ:LEAP), the owner of the prepaid phone service brand Cricket suspended the special meeting of its shareholders for the approval of the proposal of AT&T Inc. (NYSE:T) to acquire the company for $15 a share or $1.2 billion.
The scheduled vote for the approval of the offer of AT&T Inc. (NYSE:T) was rescheduled from October 24 to October 30, 2013 at 2:30 in the afternoon, Mountain Time. The special meeting will be held at the same venue, Denver Marriott Tech Center, 4900 S. Syracuse Street, Denver, Colorado.
Leap Wireless need additional time
Leap Wireless International, Inc. (NASDAQ:LEAP) explained that the special meeting was postponed because the company needs additional time to file amendments to its form 10-K for the year 2012. The company also needs to amend its form 10-Qs for its March and June quarters to address a classification mistake presented in certain capital expenditures in the consolidated statements of cash flows. The company aims to file the amendments to the Securities and Exchange Commission on October 28.
The company also rescheduled the release of its third quarter financial results for the current fiscal year to November 8. The company will issue its earnings results via a press release, and it will not conduct an earnings conference call.
AT&T – Leap Wireless acquisition
AT&T Inc. (NYSE:T) wants to acquire Leap Wireless International, Inc. (NASDAQ:LEAP) to improve its ability to compete in the mobile market. Under the terms of the agreement, it will acquire all the stock and wireless properties including licenses, network assets, retail stores as well as the 5 million subscribers of Leap Wireless. AT&T plans to retain the Cricket prepaid phone service brand.
In a previous statement, AT&T Inc. (NYSE:T) said the acquisition of Leap Wireless International, Inc. (NASDAQ:LEAP) will result in “increased competition, better device choices, improved customer care and a significantly enhanced mobile Internet experience for consumers seeking low-cost prepaid wireless plans.”
The stock price of Leap Wireless International, Inc. (NASDAQ:LEAP) is trading around $15.91 per share, down by 0.50% as of this writing.