Sprint, Nextel Near Merger Agreement
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Sprint and Nextel have reached a tentative agreement to merge, paving the way to create a unified wireless phone giant called Sprint-Nextel with 39 million subscribers, The Wall Street Journal reported. For each share of stock, Nextel shareholders will receive 1.3 shares of Sprint stock, along with a small cash payout in a deal valued at $36 billion.
If the deal is completed, Sprint will retain more than 50 percent of the combined company, as it plans to spin off its local phone carrier. Sprint CEO Gary Forsee will stay on as Chief Executive of Sprint-Nextel, while Nextel CEO Timothy Donahue becomes Executive Chairman.