Wednesday, December 15, 2004
Sprint agreed to buy Nextel Communications Inc. in a deal worth $36.3 billion to gain more business customers and more airwaves.
The deal, which was widely expected, would combine the No. 3 and No. 5 U.S. wireless carriers and create a new company with about 40 million customers, greatly narrowing the gap with industry leaders Cingular Wireless and Verizon Wireless.
Sprint plans to spin off its local telephone business to shareholders of the new company, to be called Sprint Nextel, as part of the deal.
The transaction values Nextel at $32.63 per share based on Tuesday's closing prices, representing a premium of almost 9 percent over Nextel's closing price of $29.99 on Nasdaq on Tuesday.
By: DocMemory
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