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MetroPCS-Leap On Again?

11:00 AM -- There's gossip going 'round Wall Street that talks between MetroPCS Inc. (NYSE: PCS) and Leap Wireless International Inc. (Nasdaq: LEAP) about a possible takeover might be back on again.

Leap recently rejected an unsolicited takeover bid from MetroPCS that would have valued it at $7.5 billion in total. MetroPCS initially offered 2.75 shares for each Leap share. Leap, however, considered this too cheap and rejected the offer after some deliberation. (See MetroPCS's $7.5B Leap.)

A source tells Unstrung, however, that MetroPCS and Leap may get behind the table again as MetroPCS is expected to come back with a deal that offers more than three of its shares per one of Leap's. MetroPCS's CEO, Roger Linquist, has never made a secret of his desire to combine the two operators into a new, national whole.

In fact some have even previously speculated that the motivation for MetroPCS's $1.1 billion IPO earlier this year was to put together the capital to make such a bid. (See MetroPCS Files for IPO.) If the gossip is correct, the deal could be sealed within two weeks. There is, however, no official confirmation of talks from either side. One fly in the ointment could be the fact that MetroPCS's shares dipped more than 9 percent Friday after the company revealed a 42 percent drop in net subscriber additions year-over-year.

For its part, Leap is also said to be looking for a 45 percent interest in the merged company and to still be concerned about the management structure of any combined entity.

— Dan Jones, Site Editor, Unstrung

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