CONSHOSHOCKEN, Pa.—An independent U.S. proxy advisory firm has recommended that shareholders of Sprint Nextel Corp. CDMA affiliate UbiquiTel Inc. vote in favor of the company’s proposed acquisition by Sprint Nextel.
Institutional Shareholder Services Inc. made the recommendation today. Shareholders are scheduled to vote on the matter at UbiquiTel’s June 27 annual meeting.
Sprint Nextel announced in April that it intends to buy UbiquiTel for $1.3 billion, plus assuming about $300 million in net debt. UbiquiTel’s board has recommended that shareholders approve the purchase. However, one of the carrier’s largest shareholders, Deephaven Capital Management, has protested the sale, arguing that the price Sprint Nextel is paying is “inadequate.”
Deephaven owns about 9.9 percent of UbiquiTel’s stock.
