3 Telecom Stocks Seeing Action: AT&T Rolls Out Next, Leap Wireless Gets Sued, and Vodafone Eyes October Closing on Kabel
AT&T (NYSE:T): Well, that didn’t take long. In response to T-Mobile USA’s (NYSE:TMUS) Jump upgrade plan, AT&T has rolled out its own monthly installment with an early upgrade offering, titled Next. The program allows users to pay for their devices in 20 monthly installments, and with no activation or upgrade fees. However, unlike Jump — which costs $10 per month, with no contract, and allows two upgrades per year — there’s no additional monthly fee, but there is a service contract requirement, and a 12-month wait between upgrades.
Leap Wireless (NASDAQ:LEAP): Leap is being sued by the Booth Family Trust over its potential sale to AT&T, alleging that the company set the $15-per-share price in bad faith, and through an unfair process. The transaction, which commanded an 88 percent premium at the time, “fails to maximize shareholder value” considering “Leap’s prospects for future growth,” Booth lawyers wrote in court papers.
Vodafone (NASDAQ:VOD): Vodafone’s deal with Kabel Deutschland could go through as early as October, three sources told Bloomberg. The wireless giant shelled out 87 euros per share (about $113) for the German provider, including a 2.50 euro dividend that Kabel promised to pay its shareholders in October. Vodafone is in talks with the European Commission to address competition concerns, and will decide whether to file for EU antitrust approval before or after the summer break, depending on the outcome of internal negotiations.