AT&T Inc. (NYSE:T) announced its approval to acquire Leap Wireless International Inc.

1378

Dallas, Texas 07/15/2013 (Financialstrend) – The second largest wireless carrier of the United States, AT&T Inc. (NYSE:T), has recently announced its approval to acquire Leap Wireless International Inc. for an aggregate value of $1.2 billion and this will ensure 5 million customers, an addition of airwaves and a larger share in the market for pay-as- you-go. Further, the deal has also laid out that the shareholders of Leap International will be entitled to rights to acquire a share in the proceeds that are to be obtained from the sale of 700 megahertz spectrum of Leap International in Chicago.

The spectrum was bought for $204 million in the previous year. Under the acquisition deal, the shareholders of Leap International will receive $15 share in cash which represents around 88 percent premium over the current share price of the company. San Diego-based Leap International currently has around $2.8 billion in net debt. The CEO of the AT&T Inc. has been looking for such acquisitions so as to provide for an effective expansion of the company.

AT&T Inc. (NYSE:T) closed at $35.81 on Friday, recording a decline of 0.17% for the stock. During the day, the stock was fluctuating between a low intraday price of $35.56 and a high intraday price of $35.91 per share. The stock currently has a 52-week low of $32.71 and a 52-week high of $39.00 per share. AT&T currently has a market cap of $194.19 billion with around 5.42 billion outstanding shares in the market and institutional ownership of 77 percent of the company’s total equity capital. The stock witnessed active trading in around 19.07 million shares on Friday, while the average level of trading activity for the stock is at 27.98 million shares per day.