Sprint completes acquisition of Nextel for about $38 billion

August 13, 2005|By KNIGHT RIDDER/TRIBUNE

KANSAS CITY, Mo. - Sprint Corp. and Nextel Communications formally completed their merger yesterday, forming a $76 billion communications company that already has moved its headquarters from Overland Park, Kan., to Reston, Va.

Sprint officials said the value of the merger, which actually is the acquisition of Nextel by Sprint, won't be released until Monday. Based on closing stock prices yesterday, the deal would be valued at about $38 billion.

Nextel shareholders will receive a combination of stock and cash equal to 1.3 shares of Sprint stock.

The announcement was met quickly with a notice from a Nextel affiliate that could cost the merged company billions of dollars more by forcing it to buy the affiliate.

The merged company has been renamed Sprint Nextel Corp., but it will market itself primarily under the Sprint brand. It will have 44 million wireless customers and yearly sales of more than $40 billion.

The announcement came just after markets closed yesterday.

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