MetroPCS Leap Falls Short

The low-cost wireless carrier withdraws its rejected bid for Leap Wireless.
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Low-cost wireless carrier

MetroPCS

(PCS)

on Thursday withdrew its unsolicited, all-stock offer for rival

Leap Wireless

(LEAP)

, saying the company was unreceptive.

Leap in September had

rejected the deal as inadequate. In announcing the withdrawal of the offer on Thursday, MetroPCS said it "has not been able to engage Leap in meaningful negotiations" since that time. It noted its continued penetration into existing markets and expected to add new markets in late 2008 or early 2009.

"MetroPCS believes strongly in its stand-alone prospects and will continue to focus on realizing its significant growth opportunities," the company said in a written statement.

MetroPCS's offer of 2.75 of its shares for each Leap share represented a 3% premium to Leap's $72.50 stock price at the Aug. 31 close, the session prior to the offer becoming public. Leap share spiked as high as $84.80 in the days after the news, before dipping over the last month. The stock closed at $67.19 Thursday.

MetroPCS shares have slid almost 25% since it made its bid, to close at $20.52 Thursday.