Leap Wireless Falls on Financing Worries

Leap Wireless International Inc. shares fell 14% on concerns that the wireless communications provider may not be able to get financing to expand its business, analysts said. The shares fell $2.72 to $16.78 on Nasdaq.

“The news is out that they have hoards of spectrum that’s unbuilt,” said Greg Gorbatenko, an analyst at Loop Capital Markets who has a “market under-perform” rating on Leap Wireless shares. “The capital markets are tough right now. Their saving grace would be to sell some spectrum.”

The San Diego-based company said it owns or has rights to acquire licenses covering about 72.7 million potential customers in 36 states.

Meanwhile, Gabelli Funds said it has more than doubled its stake in Leap Wireless to 5.7% from about 2.6%. Gabelli now holds about 1.9 million shares, up from about 861,000 reported in March.