Sprint Corp. hopes to raise about $604 billion from its initial public offering for Sprint PCS.
The Kansas City, Mo.-based long-distance carrier has filed its registration statement with the Securities and Exchange Commission to issue shares of new common stock to track Sprint PCS.
In addition, Sprint announced it will hold a special shareholders meeting Nov. 13 to vote on a tracking stock proposal in connection with Sprint’s assumption of ownership and management control of Sprint PCS. Sprint plans to issue shares of new common stock that tracks Sprint’s wireless operations to the cable partners in exchange for their interests.
Sprint announced a deal in late May to gain ownership and management control of Sprint PCS, its wireless venture with Tele-Communications Inc., Comcast Corp. and Cox Communications Inc.
The cable partners initially will receive a 47-percent interest in the new stock in exchange for their interest in Sprint PCS and PhillieCo. Sprint’s initial share will be 53 percent.
TCI currently owns a 30-percent interest in Sprint PCS, while Cox and Comcast own 15 percent each. Sprint, TCI and Cox own PhilliCo. Sprint will combine it wholly owned basic-trading-area properties along with PhillieCo assets under the Sprint PCS name.
