Leap Wireless (LEAP.O) said it would ask shareholders to approve a new tax benefit preservation plan aimed at limiting future tax obligations. Leap said on Wednesday that its tax bill could rise if shareholders with at least 5 percent ownership of the wireless service provider increased their holdings by more than 50 percentage points in a three-year period. As of June 30, Leap said it had net operating loss carryforwards of about $2.3 billion, which could be used to reduce future federal and state income tax obligations. Because Leap's stock has been trading heavily since then, the company said it hoped to adopt a tax benefit preservation plan for 2011 to protect its net operating loss carryforwards. The plan will include giving a dividend of one preferred stock purchase right for each outstanding share of Leap common stock.
Leap Wireless International, Inc. (Leap) is a wireless communications carrier that offers digital wireless services in the United States under the Cricket brand. Shares of LEAP traded higher by 0.78% or $0.072/share to $9.32. In the past year, the shares have traded as low as $5.78 and as high as $17.66. On average, 2550200 shares of LEAP exchange hands on a given day and today's volume is recorded at 45639.
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