Wireless service provider MetroPCS Communications Inc said on Tuesday it proposed buying competitor Leap Wireless International Inc for more than $5 billion in stock.

MetroPCS, which said a deal would create the fifth largest national wireless carrier, offered 2.75 shares of MetroPCS stock for each outstanding share of Leap common stock. Based on Friday's closing share prices, that values the bid at $75.04 per share, or $5.3 billion.

The company said that based on the average weighted stock price over the previous 20 days, the deal values Leap at $5.5 billion.

Leap shares were trading up 11 percent in premarket activity at $80.60. MetroPCS last traded on Friday on the New York Stock Exchange at $27.29.

(Reporting by Caroline Humer)