Leap Wireless Surges on AT&T Takeover Rumor

Back in December 2011, Dow component AT&T

dropped its $39 billion takeover bid for Deutsche Telekom's

T-Mobile unit after both the Federal Trade Commission (FTC) and the Justice Department opposed the takeover. In recent months, in order to make up for the failed takeover, there has been chatter circulating that AT&T may be interested in making a bid for Leap Wireless

,

, citing sources. According to people familiar with the matter, AT&T has held talks with Leap Wireless in order to grow in the maturing US carrier market. Supposedly, Leap Wireless hired bankers to advise it on a potential bid. A spokesperson from AT&T would not comment on the speculation. Currently, shares of Leap Wireless are trading about 10% higher at $5.90 per share. Leap Wireless' market cap is now $470 million, however, if AT&T was interested, it would have to worry that Leap has about $3.2 billion in long-term debt.