Nextel Partners Inc. reported that more than 20 percent of its class A common stockholders have requested that the carrier call a special meeting to vote on whether to exercise its “put right.” If approved, the “put right” would require the newly combined Sprint Nextel Corp. to purchase the 68 percent of Nextel Partners it does not currently own for “fair market value” plus a “put premium” that would be determined through an appraisal process.
Nextel Partners’ management previously stated that it would recommend to its shareholders approval of the “put” option, which was triggered after Sprint Corp. acquired Nextel Communications Inc. Analysts have predicted that Nextel Partners’ “put” option and “put premium” could garner as much as $30 per share for Nextel Partners’ shareholders. Nextel Partners’ stock was trading at $26.40 per share early Thursday, giving the carrier a total market capitalization of $7.12 billion.
Sprint Nextel said earlier this month that it intends to pursue the appraisal process under Nextel Partners “put” provision instead of moving forward with a negotiated acquisition. If initiated, Nextel Partners’ “put” provision calls for both Sprint Nextel and Nextel Partners to appoint an appraiser to determine the fair market value for Nextel Partners’ stock. If the appraisals are more than 10 percent apart, a third appraiser would be appointed to set a final value. Sprint Nextel said the appraisal process could take at least four months to complete.
