Deals
Leap Jumping at Sale Seen as Best Option for Carrier: Real M&A
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As Leap Wireless International Inc. pledges to consider all possible strategy changes, a sale would be the mobile carrier’s best shot at turning around the industry’s lowest valuation.
Net losses every year since 2006 and $3.2 billion in long-term debt pushed Leap’s shares down to 0.6 times earnings before interest, taxes, depreciation and amortization. That’s the cheapest among all U.S. telecommunications carriers trading at $100 million or more, according to data compiled by Bloomberg. The stock has fallen despite Leap’s ownership of wireless spectrum the $393 million company says should fetch $3 billion.