Sprint to Purchase Affiliate U.S. Unwired
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Sprint Corp. said Monday that it was buying affiliate U.S. Unwired Inc. for about $1 billion, ending that company’s attempt to block Sprint’s planned merger with Nextel Communications Inc.
The acquisition, coming only days before shareholders of Sprint and Nextel vote on their companies’ $35-billion combination, would settle what has been a difficult relationship between Sprint and one of its largest regional affiliates.
As part of the agreement, the two sides will ask the U.S. District Court in Lake Charles, La., to stay all pending litigation between the two companies, including U.S. Unwired’s request for an injunction on the Sprint-Nextel merger. The litigation would be resolved once the deal was closed, which Sprint said should be in the third quarter, pending regulatory and shareholder approval.
Overland Park, Kan.-based Sprint said it agreed to buy all outstanding shares of Lake Charles, La.-based U.S. Unwired for $6.25 each. Also, Sprint would assume $266 million of debt.
U.S. Unwired shares rose 4 cents to $6.20. Sprint shares rose 7 cents to $25.45.
Sprint said investors holding 27.3% of U.S. Unwired shares had agreed to tender their shares and approve the deal.
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