|
Nextel and Sprint announce telecom merger
by
Heather B. Hayes
Virginia Business
February 2005
In
what has been described as “a merger of equals,”
officials for Sprint and Reston-based Nextel Communications
announced in December that they are joining forces in
the hopes of creating “America’s premier
communications company,” according to Nextel spokesman
Scott Sloat. He notes that the companies have complementary
strengths: Sprint with its advanced wireless services
and strong consumer business, and Nextel with its innovative
“push-to-talk” technology and large presence
in the business and government markets.
The
result will be a $70 billion company known as Sprint
Nextel, which officials say will be positioned for greater
success than either company could have achieved alone.
The merger will create the country’s third largest
wireless firm behind Cingular Wireless LLC and Verizon
Wireless.
The deal valued both companies at $35 billion each,
though each Nextel shareholder will receive 1.28 shares
of Sprint and about 50 cents in cash.
Officials expect the deal, which is subject to shareholder
and regulatory approval, to be finalized sometime in
the second half this year. In the meantime, decisions
being made about how the company will be administered
are expected to have strong implications for Virginia.
The company’s executive headquarters will be set
up in Nextel’s current offices in Reston, while
operational headquarters will remain in Overland Park,
Kan.
Return to Virginia Business - February 2005 |
