Leap Wireless International has responded to the $5.5bn takeover offer from MetroPCS Communications. After mulling over the unsolicited offer for three days, Leap directors said they would review the bid in association with some heavyweight financial and legal advisers.
However, confusion at the San Diego, California-based company became apparent when CFO Amin Khalifa abruptly quit the company.
When he announced the company’s offer, MetroPCS CEO Roger Linquist offered no explanation about why MetroPCS has not sought an agreement with Leap, leaving observers to conclude it had difficulty hammering out a deal and had to force the issue by going public.
Leap said Khalifa had quit the company to pursue other interests and said CEO Doug Hutcheson, who held the post of CFO at Leap from August 2002 to February 2005, will assume the additional duties of interim CFO.
The danger now for Leap is that its share price has been buoyed by the prospect of a takeover, and if hard bargaining were to force MetroPCS to leave the negotiating table, Leap stockholders would suffer a slump in the value of their holdings.