Leap loses another executive

We’re not sure what to think of the whole Leap/MetroPCS deal. Like many of you, we don’t understand the financial aspect. Is a $5.5 billion stock bid enough to bring the companies together? Is it fair? We have no idea. We do know that in theory the two companies would do some good in this country, becoming an additional national carrier — and one that offers some quality prepaid deals. We could get all optimistic and say that the merger of the companies and their emergence on a national scale could mean a far wider spread of prepaid, like in Europe, and the essential demise of the two-year contract. The realists in us won’t believe it, but it’s nice to think about. Anyway, this means we really don’t know what’s to be gleaned from the recent resignation of two Leap officials.

Leap says these departures are unrelated to buyout talks, but that’s difficult to believe. It’s not every day that a company loses its third largest shareholder — James Dondero, who resigned earlier this week — and its CFO — Amin Khalifa, who resigned last week. Something’s afoot.

We could take shots in the dark, but that’s not fair. Suffice it to say, for the time being, that we think that the two companies will end up merging. What these recent departures mean for that merger we can’t say. Can you?

[MarketWatch]

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