Leap Wireless Shares Up 7.46% on M&A Talk

Shares of Leap Wireless closed up nearly 7.5 percent Wednesday amid speculation that anyone from MetroPCS to AT&T Inc. would buy the pay-as-you-go mobile provider.

A Leap-MetroPCS combination makes the most sense, analysts said – the two companies run very similar business models and share little network overlap. Besides, MetroPCS tried to buy Leap in 2007. The deal fell through but observers say a successful repeat would be better than an AT&T purchase.

That’s because AT&T controls 30 percent of the wireless market already. Analysts said that would pit the carrier against regulators, who have grown more stringent with the advent of a Democratic administration.

Representatives for AT&T, MetroPCS and Leap all refused to comment to media on the rumors.

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