Nextel Partners Inc. included a letter in a Securities and Exchange Commission filing that is to be sent to shareholders if the pending Sprint Corp. acquisition of Nextel Communications Inc. is approved that recommends that shareholders vote in favor of the carrier exercising its put right that would force Nextel to acquire its affiliate.
The letter, signed by John Chapple, Nextel Partners president and chief executive officer, noted that the put option “was triggered by the recently completed merger of Nextel Communications Inc. and Sprint Corp.” and that exercising the put option would require Nextel to purchase all outstanding Class A common stock of Nextel Partners at a “fair market value price that includes a control premium.” Nextel Partners said it will hold a special meeting to vote on the put option.
Nextel currently owns 32 percent of Nextel Partners, which as of Friday morning had a market capitalization of more than $7 billion. Analysts have noted that the control premium could place a 20-percent premium on top of Nextel Partners’ market value.
Nextel Partners’ affiliate agreement with Nextel provided the carrier with an 18-month window in which to exercise the put option should Nextel have a change of control.
Nextel Partners’ stock was trading up 31 cents per share early Friday at $26.48 per share.
