September 3 2009 - 10:45 am ET | Tracy Ford | RCR Wireless News
Leap Wireless International Inc. saw its stock rise yesterday as speculation mounted that AT&T Mobility may want to add the flat-rate carrier to its stable.

Leap’s stock jumped nearly $2 a share from $16.07 to $17.84 on the rumors, before settling down to $17.24 this morning. Leap has been the subject of acquisition fodder before, but most often with fellow flat-rate competitor MetroPCS. MetroPCS tried to buy Leap in 2007, but the deal fell apart when the two couldn’t agree on a price.

Any tie-up with AT&T is likely to attract shareholder and government scrutiny. While AT&T would increase its prepaid subscriber base by buying Leap, the two carriers don’t use the same technology, so it is likely they would continue to operate separate networks. Further, a merger between the nation’s No. 2 carrier and the seventh-largest carrier likely would spur increased regulatory scrutiny at a time when the Federal Communications Commission is already investigating whether there is enough competition in the wireless space and Sen. John Kerry (D-Mass.) asking the FCC to probe exclusive handset deals between manufacturers and carriers

»www.rcrwireless.com/article/2009···t-rumors