Nextel Partners: Nextel Communications Put Option View Inaccurate

WASHINGTON -(Dow Jones)- Nextel Partners Inc. (NXTP) Wednesday said it believes that Nextel Communications Inc.'s views related to the put process to buy out Nextel Partners are "inaccurate and misleading."

Nextel Communications owns 32% of stock of affiliate Nextel Partners, which can force it to buy out stock it doesn't own under the put provisions.

Nextel Communications, which became Sprint Nextel Corp. (S) through its merger with Sprint last week, said earlier Wednesday that it intends to pursue an appraisal process under the put provisions rather than a negotiated acquisition.

In a filing with the Securities and Exchange Commission, Nextel Partners said its counsel sent a letter Sunday to Nextel Communications saying, "In the context of Nextel Communications' obvious desire to reduce the price it will have to pay for Nextel Partners if the put is exercised, your letter just appears to be part of Nextel Communications' ongoing, and in our view inappropriate, campaign to try to hurt the trading price of Nextel Partners' stock."

Nextel Partners didn't release the contents of the letter from Nextel Communications' counsel or say which of Nextel Communications' views are "inaccurate and misleading."

"I sincerely hope that Nextel Communications and Sprint Nextel will not use your letter as an excuse for another gratuitous public filing," Nextel Partners said.

According to a Wall Street Journal report Wednesday, the two companies are likely to be far apart over price, and Sprint Nextel said it intends to make a filing with the SEC later Wednesday "outlining its views on what it sees as valuation and other issues arising under the complex and unusual put provisions."

The Journal report said analysts expect the appraisal process to take several months.

Nextel Partners shares closed Wednesday at $26.54, up 43 cents, while Sprint Nextel shares closed at $26.35, up 49 cents.

-By Bhattiprolu Murti, Dow Jones Newswires; 202-862-1357

(END) Dow Jones Newswires"

Posted to the site on 18th August 2005