Sprint Nextel Corp. said it intends to pursue the appraisal process under network affiliate Nextel Partners Inc.’s “put” provision instead of moving forward with a negotiated acquisition.
Nextel Partners has said it would recommend its shareholders initiate the “put” option following Sprint Corp.’s acquisition of Nextel Communications Inc. that closed Aug. 12. The “put” option requires Nextel to purchase the 68 percent of Nextel Partners it does not currently own at “fair market value” plus a “put premium.”
If initiated, Nextel Partners’ “put” provision calls for both Sprint Nextel and Nextel Partners to appoint an appraiser to determine the “fair market value” for Nextel Partners’ stock. If the appraisals are more than 10 percent apart, a third appraiser will be appointed to set a final value. Sprint Nextel said the appraisal process could take at least four months to complete.
Nextel Partners’ stock was trading at a 52-week high of $27.40 per share early Wednesday before dropping to $26.23 per share by mid-day, giving the carrier a market capitalization of more than $7 billion. Nextel Partners currently holds spectrum licenses covering 54 million potential customers in 13 of the nation’s top 100 markets.
