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 financial statements.
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 operating
activities.
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 periods.
The resulting restatements have no impact on the total
end-of-period cash and cash equivalents for any of the affected
periods.
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 nathalie.tadena@wsj.com
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