United States: Sprint Nextel to acquire iPCS affiliate.Byline: datta03 Sprint Nextel Sprint Nextel Corporation (NYSE: S) is one of the largest telecommunications companies in the world. With 55 million subscribers, Sprint Nextel operates the third largest wireless telecommunications network in the United States (based on total wireless customers), behind Corp. on Monday said it will buy iPCS Inc. for $831 million in cash and assumed debt, ending a long history of legal conflict with its smaller wireless affiliate. Schaumburg, Ill.-based iPCS /quotes/comstock/15*!ipcs/quotes/nls/ipcs (IPCS 23.83, -0.05, -0.23%) provides wireless service under the Sprint brand to more than 700,000 customers in the Midwest. The company has sued Sprint Nextel /quotes/comstock/13*!s/quotes/nls/s (S 3.45, +0.01, +0.29%) several times to prevent the larger carrier from competing with iPCS in its territory. Terms of the buyout agreement call for Sprint Nextel to pay $24 a share in cash for all the common stock of iPCS, a 34% premium over the closing price of iPCS on Oct. 16. Shares of iPCS jumped 33% to $23.85 in Monday trades. Sprint Nextel will also assume about $405 million in iPCS debt, the companies said. "Given the increasingly competitive landscape, we believe this is an opportune op·por·tune adj. 1. Suited or right for a particular purpose: an opportune place to make camp. 2. Occurring at a fitting or advantageous time: an opportune arrival. time to provide our shareholders with a liquidity event at a very attractive price," said iPCS Chief Executive Timothy Yager in a statement. The acquisition will result in annual "synergies," or savings, of $30 million after completion and add positive cash flow starting in 2010, Sprint Nextel said. The Overland Park Overland Park, city (1990 pop. 111,790), Johnson co., NE Kans., a residential suburb of Kansas City; inc. 1960. There is printing and publishing, and the manufacture of apparel, aircraft parts, cement, prepared foods, salt, chemicals, marine accessories, and signs. , Kan.-based wireless-phone company expects the deal to close by late 2009 or early 2010. Sprint Nextel and iPCS will freeze pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. between the two companies, "with a final resolution to become effective upon closing of the acquisition," they said. Because iPCS sells Sprint-branded service, Sprint Nextel said customers won't notice any hiccups Hiccups Definition Hiccups are the result of an involuntary, spasmodic contraction of the diaphragm followed by the closing of the throat. Description in their service. "Customers in iPCS territory will see a seamless transition and continue to enjoy a superb customer experience," CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Dan Hesse said. IPCS has wireless licenses that cover 15.1 million people in portions of Illinois, Michigan, Pennsylvania, Indiana, Iowa, Ohio and Tennessee. During the summer, Sprint also agreed to buy Virgin Mobile USA Virgin Mobile USA (NYSE: VM) is a cellular telephone company that is a joint-venture between Sir Richard Branson's Virgin Group and Sprint Nextel. Virgin Mobile USA uses Sprint's CDMA-based Personal Communications Service (PCS) network. Inc. in a stock deal valued at $483 million. Virgin Mobile bought minutes on Sprint's network and sold cheaper prepaid service to younger people and others on tight budgets. Copyright : Euclid Infotech Pvt. Ltd. Provided by Syndigate.info an Albawaba.com company |
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