AT&T's Leap Deal Puts Buyer-Friendly Twist On Reverse MACs

Law360, New York (July 15, 2013, 9:29 PM EDT) -- The $1.2 billion deal AT&T Inc. and Leap Wireless International Inc. struck Friday includes a variation on the classic “material adverse change” clause, allowing Leap to terminate in light of favorable changes but carving out a slew of exceptions that benefit AT&T.

The deal, which will see AT&T swallow Leap for $15 per share plus $2.8 billion in outstanding debt, gives the wireless giant access to about 5 million new customers. The price is 88 percent above Leap's closing stock price Thursday, a eyebrow-raising premium.

But AT&T...
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