Leap Wireless to be bought for $5.5 bln by MetroPCS

MetroPCS Communications announced today that to had proposed to buy Leap Wireless International in a deal worth roughly $5.5 bln.

The Leap Wireless deal would make a new national wireless carrier in a merger many investors have been speculating would happen for months.

In a conference call about Leap Wireless, MetroPCS CEO Roger Linquist said, “We’re effectively looking to create a fifth national carrier. By acting now, we can maximize the potential synergies here,”

The Leap Wireless announcement today sent Leap Wireless shares up 15% to $83.69 but Leap Wireless could go even higher if shareholders in Leap Wireless hold out for a higher price.

What do you think Leap Wireless shareholders should do?

Should Leap Wireless sell now or wait for a possible higher bid?

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