By Dow Jones Business News, October 23, 2013, 09:10:00 AM EDT
By Nathalie Tadena
Leap Wireless International Inc. ( LEAP ) on Wednesday said it will postpone a special shareholder meeting to vote on
its planned acquisition by AT&T Inc. ( T ) to give the pay-as-you-go wireless provider time to correct errors in prior
The company said it intends to adjourn the meeting, which was scheduled for Thursday, without conducting any business
and to reconvene the meeting Oct. 30. It also rescheduled its third-quarter earnings report to Nov. 8 from Oct. 29.
The company in July agreed to be acquired by larger peer AT&T for about $1.2 billion in cash. Leap said it doesn't
expect the financial restatements to affect the pending deal.
In a regulatory filing, Leap said its audit committee concluded its financial statements for certain periods from 2011
to 2013 should no longer be relied upon due to a classification error in its presentation of certain capital
expenditures and consolidated statements of cash flows.
The company said the error related to certain purchases of property and equipment that were unpaid at each of the
balance- sheet dates and were incorrectly reflected as cash outflows from investing activities and cash inflows from
The error was identified by management during the preparation of its third-quarter report. Leap said its management
concluded that a material weakness in internal controls over financial reporting existed during each of the affected
The resulting restatements have no impact on the total end-of-period cash and cash equivalents for any of the affected
Leap shares closed at $15.99 Tuesday and were inactive premarket. The stock is off 7% over the past three months.
Write to Nathalie Tadena at email@example.com
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