RUTHERFORD, N.J.-A definitive merger agreement between Nextel Communications Inc. and American Mobile Systems Inc. replaces a previously announced stock purchase agreement between the companies.
Terms of the tax-free merger dictate each AMS share not currently held by Nextel be exchanged for .62 of a share of Nextel common stock. Up to 4.2 million Nextel shares will be issued, the company said, valuing the transaction at about $65 million based on Nextel’s price of $15.63 per share April 25.
The transaction is subject to AMS’ shareholder approval.
