While the deal between Leap Wireless and MetroPCS seems to be at a standstill following Leap's public rejection of MetroPCS's unsolicited $4.7 billion offer, analysts are optimistic that a merger is imminent. Lehman Brothers analyst Brett Feldman said that the Leap response was "not a final rejection, but the next volley in what we expect to be continued negotiations." Feldman continued: "A deal between these two companies is still likely...prior to Thanksgiving." Feldman, like other analysts, believes future talks will be held in private, however.
Banc of America Securities analyst David Barden noted that Leap's public rejection was a harsh response to MetroPCS's public offer: "We believe a deal is still possible, of course, but Leap, in our opinion, clearly seemed to take offense at the PCS approach and responded in kind."
For more analysis of the deal:
- read this article from the San Diego Union-Tribune