Leap Wireless International on Sunday rejected a $5bn unsolicited takeover bid from rival US telecommunications group MetroPCS, setting the stage for a lengthy battle over the possible deal.

After nearly two weeks of silence, Leap’s board said the all-stock offer by MetroPCS, worth $69.03 per share at Friday’s close, undervalues the company, fails to recognise Leap’s growth prospects and comes at a time of too much uncertainty over MetroPCS’s management team.