Archived from groups: alt.cellular.fido (More info?)
Sprint buys Nextel.. What will become of Mike, now the Moto's large iden
customer is dead? (The new company, over time, will move Nextel's network to
the same technology that Sprint uses.)
http://story.news.yahoo.com/news?tmpl=story2&u=/nm/20041215/bs_nm/telecoms_nextel_sprint_dc
Sprint to Buy Nextel in $36 Billion Deal
40 minutes ago Business - Reuters
NEW YORK (Reuters) - Sprint Corp. on Wednesday agreed to buy mobile
telephone company Nextel Communications Inc. in a deal worth $36.3 billion
to gain more business customers and more airwaves to transmit calls.
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.
Nextel shares fell 10 cents to $29.89 in morning trade on Nasdaq, while
Sprint shares fell 21 cents to $24.89 on the New York Stock Exchange (news -
web sites).
The merger will attempt to smoothly combine 39 million customers using two
divergent networks. Nextel has aimed its popular "push-to-talk"
walkie-talkie service mostly at business consumers, who account for roughly
three-fourths of its customer base. That ratio of business to consumers is
flipped at Sprint, which has had a greater emphasis on retail customers and
data services.
The companies, which have a combined market capitalization of about $70
billion, had combined revenue of $40 billion for the 12 months ended Sept.
30, including about $6 billion from Sprint's local telephone business.
Sprint and Nextel said they expect savings of about $12 billion from the
deal, from reductions in capital spending and operating costs. Sprint
Chairman and Chief Executive Gary Forsee said there would be job cuts, but
he did not provide specifics. After its recent merger with AT&T Wireless,
Cingular Wireless said it would cut about 10 percent of its work force, or
7,000 jobs.
Sprint and Nextel said they were forecasting integration costs of $1 billion
to $1.3 billion in 2006, and an additional $200 million to $500 million in
2007.
The deal leaves T-Mobile USA, owned by Deutsche Telekom AG, a distant fourth
among U.S. national wireless carriers, with about 16.3 million customers.
Under the terms of the deal, existing Sprint shares will remain outstanding
and Nextel shares will be converted into shares of the new company and a
small amount of cash, valuing each Nextel share at about 1.3 shares of
Sprint Nextel common stock.
The stock and cash allocation will be determined at the closing to ensure
the local business spinoff is tax free, and the cash portion of the deal
will not exceed $2.8 billion. At current figures, Nextel shareholders would
receive about 1.28 Sprint Nextel shares and 50 cents in cash for each Nextel
share, the companies said.
Sprint Chairman and Chief Executive Gary Forsee is to become CEO of the new
company, and Nextel CEO Timothy Donahue will become chairman. Sprint Chief
Operating Officer Len Lauer and Nextel Chief Financial Officer Paul Saleh
will maintain their roles at the new company.
The local telecommunications business will have its own management team and
board of directors.
The spun-off local telecoms business is expected to pay quarterly dividends,
but Sprint Nextel plans to stop paying dividends following the spinoff, the
companies said.
The deal, which is subject to shareholder and regulatory approval, is
expected to close in the second half of 2005. Analysts widely expect
regulators to approve the deal.
The new company, over time, will move Nextel's network to the same
technology that Sprint uses.
Sprint buys Nextel.. What will become of Mike, now the Moto's large iden
customer is dead? (The new company, over time, will move Nextel's network to
the same technology that Sprint uses.)
http://story.news.yahoo.com/news?tmpl=story2&u=/nm/20041215/bs_nm/telecoms_nextel_sprint_dc
Sprint to Buy Nextel in $36 Billion Deal
40 minutes ago Business - Reuters
NEW YORK (Reuters) - Sprint Corp. on Wednesday agreed to buy mobile
telephone company Nextel Communications Inc. in a deal worth $36.3 billion
to gain more business customers and more airwaves to transmit calls.
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.
Nextel shares fell 10 cents to $29.89 in morning trade on Nasdaq, while
Sprint shares fell 21 cents to $24.89 on the New York Stock Exchange (news -
web sites).
The merger will attempt to smoothly combine 39 million customers using two
divergent networks. Nextel has aimed its popular "push-to-talk"
walkie-talkie service mostly at business consumers, who account for roughly
three-fourths of its customer base. That ratio of business to consumers is
flipped at Sprint, which has had a greater emphasis on retail customers and
data services.
The companies, which have a combined market capitalization of about $70
billion, had combined revenue of $40 billion for the 12 months ended Sept.
30, including about $6 billion from Sprint's local telephone business.
Sprint and Nextel said they expect savings of about $12 billion from the
deal, from reductions in capital spending and operating costs. Sprint
Chairman and Chief Executive Gary Forsee said there would be job cuts, but
he did not provide specifics. After its recent merger with AT&T Wireless,
Cingular Wireless said it would cut about 10 percent of its work force, or
7,000 jobs.
Sprint and Nextel said they were forecasting integration costs of $1 billion
to $1.3 billion in 2006, and an additional $200 million to $500 million in
2007.
The deal leaves T-Mobile USA, owned by Deutsche Telekom AG, a distant fourth
among U.S. national wireless carriers, with about 16.3 million customers.
Under the terms of the deal, existing Sprint shares will remain outstanding
and Nextel shares will be converted into shares of the new company and a
small amount of cash, valuing each Nextel share at about 1.3 shares of
Sprint Nextel common stock.
The stock and cash allocation will be determined at the closing to ensure
the local business spinoff is tax free, and the cash portion of the deal
will not exceed $2.8 billion. At current figures, Nextel shareholders would
receive about 1.28 Sprint Nextel shares and 50 cents in cash for each Nextel
share, the companies said.
Sprint Chairman and Chief Executive Gary Forsee is to become CEO of the new
company, and Nextel CEO Timothy Donahue will become chairman. Sprint Chief
Operating Officer Len Lauer and Nextel Chief Financial Officer Paul Saleh
will maintain their roles at the new company.
The local telecommunications business will have its own management team and
board of directors.
The spun-off local telecoms business is expected to pay quarterly dividends,
but Sprint Nextel plans to stop paying dividends following the spinoff, the
companies said.
The deal, which is subject to shareholder and regulatory approval, is
expected to close in the second half of 2005. Analysts widely expect
regulators to approve the deal.
The new company, over time, will move Nextel's network to the same
technology that Sprint uses.
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