Sprint and Nextel Get Merger Approval From Shareholders
Shareholders of both Nextel and Sprint have voted to approve the merge or equals between Sprint Corp. and Nextel Communications, which was announced back in December.
“The resounding stockholder support for this merger endorses the smart strategic rationale and the tremendous value creation opportunities before us,” said William E. Conway, Nextel’s chairman of the board.
According to a press release from Nextel, 786,848,210 of Nextel’s outstanding shares of class A common stock, representing 71.3% of the outstanding shares, voted in favor of the proposal.
“We look forward to quickly completing the merger approval process and carrying our strong operating momentum into the combined company,” said Nextel President and CEO Timothy Donahue.
Nextel shareholders voted to elect Donahue along with Frank M. Drendel and William E. Kennard to be directors, each for a term of three years.
“The Sprint and Nextel merger is a bold move that will allow the newly merged company to play a winning hand,” said Sprint Chairman and CEO Gary Forsee told
“Together, we will be a well-positioned communications company, with unmatched wireless capabilities and a global IP network,” he added. “And, the proposed spin-off of our local telecommunications business will create the largest, non-RBOC local company, serving 7.6 million access lines in 18 states.”
The deal is expected to reach completion in the third quarter of this year, but is still subject to regulatory approvals. After the deal is done, the combined company stock will trade on the New York Stock Exchange under the ticker symbol “S.”
“When you consider the substantial synergies that can be achieved, along with the strong brand and market position that we will enjoy, we believe Sprint Nextel will provide shareholders an even more compelling investment opportunity,” said Forsee.
Sprint has a lot going on. Just two days ago, Sprint’s planned $1.3 billion acquisition of US Unwired was approved by the boards of directors of both Sprint and US Unwired.