The vendor-financing paper of Leap Wireless has continued its climb, ticking up with at least one trade in the 747Ž8 context last week. Wireless names in general have been trading very strongly, noted one trader. But market sources also pointed to lingering rumors that the company will be bought. Jim Seines, Leap's director of investor relations and public affairs, would not comment on the buyer speculation.
Leap Wireless has tons of free cash flow and that is what private equity firms like to see, noted a buysider, commenting on the possibility of an outside buyer. The company also has a lot of spectrum and that could be used to build a larger wireless platform, he added. A $100 million piece of Leap's vendor financing paper was said to have traded out of the hands of the last original holder--Lucent Technologies--toward the end of 2003. The name is now held completely by secondary holders.