RESTON, Va.-Nextel Communications Inc. said it has revised securities purchase agreements with Digital Radio and Craig McCaw that will result in both parties possibly leaving the carrier’s board of directors by 2005.
Nextel said the departures are part of specified board representation rights both Digital Radio and McCaw received when they originally invested in Nextel in 1995. Those agreements provided preferred rights to three board seats and to appoint board members to serve on Nextel’s audit, compensation, nominating or corporate governance committees if both Digital Radio and McCaw maintained at least five percent ownership in Nextel, a level the carrier expects both parties to fall short of in the near term.
Nextel said it will ask shareholders to ratify the appointment of McCaw and Eagle River’s Dennis Weibling to serve their existing terms on Nextel’s board until they are set to expire in 2004 and 2005 respectively. Eagle River’s Tim Bryan is also expected to step down from the board when his term expires this May.
“Craig has been a significant contributor to our success and has helped us become a major force in the wireless industry,” said Tim Donahue, president and chief executive officer of Nextel. “We are pleased Nextel will continue to benefit from his leadership and insight in his role as board member.”
Nextel also appointed former Ernst & Young vice chairman and partner Stephanie Shern to its board of directors.
