SAN DIEGO-A binding arbitrator said Leap Wireless International Inc. will have to pay an additional $41 million in cash or approximately 21.5 million shares to MCG PCS Inc. for wireless licenses Leap purchased in April 2000, covering Buffalo and Syracuse, N.Y.
MCG claimed a purchase price adjustment under a clause in the purchase agreement that provided for an adjustment if the results of the Federal Communications Commission Auction 35 showed that the originally negotiated price was less than the value of certain licenses sold in that auction. Leap disputed the claim, which led to the parties commencing binding arbitration last January.
Leap, which has launched its Cricket service in both markets, said it is evaluating the arbitration ruling.
