Following MetroPCS merger offer, Leap loses CFO

Leap Wireless International Inc. announced that its CFO Amin Khalifa has “resigned from the company to pursue other interests,” and that Leap CEO and President Doug Hutcheson would assume his duties. Hutcheson was Leap’s CFO prior to being named CEO.
Khalifa joined Leap as CFO in August 2006.
The announcement comes as Leap begins its review of MetroPCS Communications Inc.’s proposed merger with the carrier, an offer MetroPCS floated earlier this week.
Leap said its board will make a recommendation on the merger once its review is complete. Leap is being advised by Goldman, Sachs & Co. and Jeffrey Williams & Co. L.L.C. as financial advisors, and its legal advisors are Wachtell, Lipton, Rosen & Katz; and Latham & Watkins L.L.P.
MetroPCS earlier this week sent Leap a letter detailing its offer, which involves a “stock-for-stock, tax-free merger that will create a fifth national wireless carrier.” Each outstanding share of Leap’s stock would be exchanged for 2.75 shares of MetroPCS’ common stock, which MetroPCS said implies a value of $77.89 per share for Leap. MetroPCS would also take on about $2 billion of Leap’s debt. The merged company would be 65.4% owned by MetroPCS shareholders, and 34.6% owned by Leap shareholders.
MetroPCS also said that it believes Leap’s stock “has traded in part in anticipation of a merger between the two companies” since MetroPCS went public last spring.