MCLEAN, Va.-Nextel Communications Inc. reached a definitive agreement with Comcast Corp. to acquire a previously issued and outstanding option covering 25 million Nextel shares.
Terms of the repurchase transaction call for Nextel to acquire the outstanding option from an affiliate of Comcast, and Comcast’s anti-dilutive right to purchase additional shares of Nextel stock and its right to nominate board members will be relinquished.
“The market’s perception of the Comcast option seemed to have two competing strains-a potential source of significant new equity funding and a significant potential equity market overhang,” said Steven Shindler, Nextel’s chief financial officer.
“This transaction will remove the potential dilutive impact associated with any exercise and resale into the market of option shares representing more than 10 percent of Nextel’s currently outstanding shares.”
He continued, “At the same time, freeing these 25 million shares from this issuance commitment returns to Nextel the ability to control their placement and gives us much more flexibility in exploring and structuring potential transactions with others who may wish to acquire strategic equity positions in Nextel.”
