NEW YORK-Nextel Partners Inc. was victorious late last week as a judge ruled the carrier could disclose the results of the first two appraisers in its ongoing battle with Sprint Nextel Corp. in determining a “fair market value” price for Sprint Nextel’s forced purchase of the 68 percent of Nextel Partners it does not already own.
Nextel Partners said its original affiliate agreement required the carrier to disclose the appraisal results once they are done. The appraisals, which are being conducted by Nextel Partners’ choice of Morgan Stanley & Co. and Sprint Nextel’s choice of Lazard, are set to be completed by Dec. 28. If the two appraisals are more than 10 percent apart, a third appraiser will be tapped to provide a final valuation.
Sprint Nextel had claimed that the findings of the third appraiser would be tainted by the release of the first two appraisals. Nextel Partners countered that all three appraisals should be conducted at the same time in order to avoid any contamination.
Nextel Partners also noted that the Delaware court agreed that the affiliate’s interpretation of how the fair market value should be determined. Nextel Partners has said that its affiliate agreement calls for a fair market valuation to discount any negative impact the carrier’s use of iDEN technology or non-congruent spectrum would have on determining the company’s value. Sprint Nextel had claimed that Nextel Partners’ technology and spectrum position make it attractive only to Sprint Nextel as an acquisition target.
Nextel Partners said it expects the appraisal process to be completed by Feb. 11.
