2.4.0.82102100 - Disclosure - Proposed Merger Proposed Mergertruefalsefalse1false falsefalseD2013Q2YTDhttp://www.sec.gov/CIK0001065049duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_BusinessCombinationsAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse0Business Combinations [Abstract]2false 2us-gaap_BusinessCombinationDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Proposed Merger</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">On July 12, 2013, AT&amp;T Inc. ("AT&amp;T") entered into an Agreement and Plan of Merger, dated as of July 12, 2013 (the "Merger Agreement"), with Leap, Mariner Acquisition Sub Inc., a Delaware corporation and wholly-owned subsidiary of AT&amp;T ("Merger Sub"), and Laser, Inc., a Delaware corporation (the stockholders' representative), pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, AT&amp;T will acquire Leap in a transaction in which Leap stockholders would receive $</font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">15.00</font><font style="font-family:inherit;font-size:10pt;"> in cash for each outstanding share of Leap's common stock, plus </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">one</font><font style="font-family:inherit;font-size:10pt;"> non-transferable contingent value right ("CVR") per share (together, the "Merger Consideration"). The CVR will entitle each Leap stockholder to a pro rata share of the net proceeds of the future sale of the Company's 700 MHz A block license in Chicago. The Merger Agreement provides that, on the terms and subject to the conditions thereof, Merger Sub will be merged with and into Leap (the "Merger") with Leap continuing as the surviving corporation in the Merger, and each outstanding share of common stock of Leap (other than excluded shares) will cease to be outstanding and will be converted into the right to receive the Merger Consideration.</font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Each outstanding stock option, whether vested or unvested, that was granted under one of Leap's stock plans and that has an exercise price equal to or below the </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$15.00</font><font style="font-family:inherit;font-size:10pt;"> per share cash merger consideration will be cancelled at the effective time of the Merger and will entitle the holder to receive (1) cash equal to the product of the total number of shares underlying the stock option multiplied by the difference, if any, of the per share cash merger consideration and the exercise price per share underlying each stock option, less any applicable withholding taxes and (2) one CVR for each share underlying the stock option. Holders of an outstanding stock option, whether vested or unvested, with an exercise price greater than the per share cash merger consideration, will have the opportunity to exercise such stock option prior to the effective time of the Merger by providing Leap with a notice of exercise and, for each share underlying the stock option, a cash amount equal to the difference of the exercise price underlying the stock option less the per share cash merger consideration. Each stock option that is so exercised will be settled at the effective time of the Merger and the holder will receive one CVR in respect of each share underlying the stock option and, to the extent the stock option is not exercised prior to the effective time of the Merger, the stock option will be cancelled at the effective time of the Merger for no consideration to the holder. Each outstanding share of restricted stock granted under Leap's stock plans will be cancelled at the effective time of the Merger and the holder will receive the per share cash merger consideration, less any applicable withholding taxes, plus one CVR in respect of such share of restricted stock. Each outstanding stock unit granted under Leap's stock plans (including performance stock units, deferred stock units and deferred cash units but excluding any cash award with a value that is not determined based on the price of Leap common stock), whether vested or unvested, will be cancelled and will entitle the holder to receive an amount in cash equal to the product of the number of shares covered by the unit (assuming target level of performance for any incomplete performance periods) multiplied by the per share cash merger consideration, less any applicable withholding taxes, plus one CVR in respect of such unit.</font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Leap has made customary representations, warranties and covenants in the Merger Agreement, including, among others, covenants (i) not to solicit proposals relating to alternative transactions or, subject to certain exceptions, enter into discussions concerning or provide information in connection with alternative transactions, and (ii) subject to certain exceptions, not to withhold, withdraw or modify in a manner adverse to AT&amp;T the recommendation of Leap's board of directors that Leap's stockholders adopt the Merger Agreement. Leap may furnish non-public information to a third party who has made an unsolicited proposal that Leap's board of directors determines could be reasonably expected to result in a superior proposal and may engage in discussions with such third party. However, prior to any change in the recommendation of Leap's board of directors, AT&amp;T will have the right to propose revisions to the Merger Agreement and Leap's board of directors must negotiate in good faith and consider such revised terms prior to making a determination to change its recommendation with respect to the Merger. Even if Leap's board of directors changes its recommendation, Leap must continue to submit the Merger Agreement to a vote of its stockholders.</font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Consummation of the Merger is subject to various customary conditions, including, among others, the adoption of the Merger Agreement by the requisite vote of Leap's stockholders; expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended; approval of the transaction by the Federal Communications Commission (the "FCC"); and approval of the transaction by applicable state public utility commissions. The parties have agreed to use their respective reasonable best efforts to obtain all necessary regulatory approvals for the Merger, provided that AT&amp;T will not be obligated to agree to divestitures or other restrictions that would have any effect on AT&amp;T or to divestitures or other restrictions that would reasonably be expected to have a material adverse effect on Leap and its subsidiaries, taken as a whole. It is a condition to AT&amp;T's obligation to consummate the Merger that the FCC approval has been obtained by final order and that other regulatory approvals have been obtained, in each case without the imposition of an adverse regulatory condition.</font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Merger Agreement also provides for certain termination rights, including the right of either party to terminate the Merger Agreement if the Merger is not consummated by July 11, 2014 (the "Termination Date," as it may be extended in certain circumstances to January 11, 2015) and the right of AT&amp;T to terminate the Merger Agreement if Leap's board of directors changes its recommendation with respect to the Merger. A termination fee of $</font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">46.3</font><font style="font-family:inherit;font-size:10pt;"> million is payable by Leap to AT&amp;T upon termination of the Merger Agreement under specified circumstances following the making of a bona fide acquisition proposal (as defined in the Merger Agreement), including as a result of a change in Leap's board of directors' recommendation relating to a superior acquisition proposal. A termination fee of approximately $</font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">71.2</font><font style="font-family:inherit;font-size:10pt;"> million will be payable by Leap to AT&amp;T if the Merger Agreement is terminated by AT&amp;T or Leap because Leap stockholder approval was not obtained following a change in Leap's board of directors' recommendation, or by AT&amp;T following a change in Leap's board of directors' recommendation, where in each case the change of recommendation was in connection with a specified intervening event.</font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">If the Merger Agreement is terminated because the Termination Date has been reached because there is an order of a governmental entity permanently preventing completion of the transaction or as a result of a breach by AT&amp;T and AT&amp;T's breach materially contributed to the failure to receive regulatory approval, and, at the time of such termination, all regulatory approvals have not been received or the transaction has been enjoined, Leap, subject to certain exceptions, will have the option within </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">30</font><font style="font-family:inherit;font-size:10pt;"> days of termination of the Merger Agreement to enter into a </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">three</font><font style="font-family:inherit;font-size:10pt;">-year LTE data roaming agreement with AT&amp;T, which will provide coverage in certain of Leap's markets not covered by Leap's LTE network. If Leap enters into the roaming agreement, AT&amp;T will then have the option within </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">30</font><font style="font-family:inherit;font-size:10pt;"> days after entry into the roaming agreement to purchase certain of Leap's spectrum assets. If AT&amp;T does not exercise its right to purchase all of the specified spectrum assets, Leap may, within </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">60</font><font style="font-family:inherit;font-size:10pt;"> days after expiration of AT&amp;T's option, require AT&amp;T to purchase all of the specified assets.</font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:17px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Affiliates of MHR Fund Management LLC ("MHR"), which collectively owned approximately </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">29.9%</font><font style="font-family:inherit;font-size:10pt;"> of the outstanding shares of Leap common stock as of July 22, 2013, have entered into a voting agreement with AT&amp;T and Leap, pursuant to which MHR has agreed to vote such shares in favor of adoption of the Merger Agreement and against any competing acquisition proposals, subject to the limitation set forth in the voting agreement. MHR's obligations under the voting agreement will terminate upon (i) the termination of the Merger Agreement in accordance with its terms and (ii) certain material amendments to the Merger Agreement.</font></div></div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. 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