MONTVALE, N.J.-Geotek Communications Inc. Friday said it plans to sell to Nextel
Communications Inc. its portfolio of 191 specialized mobile radio 900 MHz licenses. The deal is valued at $150
million.
Geotek declared bankruptcy last year and is selling off its assets to repay its creditors. The company was
not expected to announce a buyer until Tuesday at a Delaware bankruptcy court hearing. (See related story on page
23.)
The planned sale to Nextel, however, could hit a roadblock because Nextel is prohibited by a 1994 antitrust
consent decree from holding 900 MHz SMR licenses in major markets where it has 800 MHz SMR interests. The
Justice Department recently rejected Nextel’s request to modify the antitrust settlement.
Other companies that had
made bulk bids for Geotek’s licenses, including Chadmoore Wireless Group and Mobex Communications, could
challenge Nextel’s efforts in a federal district court to modify the consent decree.
A December auction for Geotek’s
individual licenses would have raised $54 million total from bidders Industrial Communications & Electronics Inc.,
Southern Co., FleetTalk Partners, Mobex and others. Prior to selling its licenses, Geotek outlined a plan to offer its
licenses individually and in bulk and accept the highest total offer.
The deal with Nextel is subject to bankruptcy
court and regulatory approvals.
