NEW YORK (Reuters) - Shares of Leap Wireless LEAP.O, which earlier this month agreed to be acquired by AT&T Inc (T.N), fell 2.7 percent on Wednesday after Leap disclosed details of the bid process that diminished investor hopes that a rival bid would emerge.
Under the deal announced on July 12, AT&T will buy Leap for $1.19 billion, or $15 per share, which represented an 88 percent premium to Leap’s closing share price that day.
Leap shares have traded well above the offer price since the deal was announced, leading to some analyst speculation that the company could receive a counter bid.
But Leap, in a proxy statement filed on Tuesday, suggested that AT&T was the only company interested in buying it at the time of their deal. Leap also provided details of talks with other companies that did not work out.
“When investors saw there was no second bidder in the proxy it reduced speculation that a competitive bid would be launched,” BTIG analyst Walter Piecyk said.
Some analysts previously speculated that AT&T’s smaller rival T-Mobile US TMUS.N might want to make a counter bid, but a T-Mobile executive indicated earlier this month that it would prefer to save money by competing to lure away Leap customers.
Leap shares were down 46 cent at $16.75 on Nasdaq in afternoon trading.
Reporting by Sinead Carew; Editing by Leslie Adler