Alamosa Discloses Derivative Suit Tied To Sprint Nextel Merger

WASHINGTON -(Dow Jones)- Alamosa Holdings Inc. disclosed Friday that a purported shareholder derivative class action was filed in the District Court of Lubbock County, Texas, related to the company's impending merger with Sprint Nextel Corp.

The suit alleges that Alamosa's executives provided confidential information to Sprint in exchange for stock options that vest when the company is sold.

Sprint Nextel's planned acquisition of Alamosa for about $3.4 billion in cash, or $18.75 per share, was announced Nov. 22. The purported class action was filed the next day.

Shares of Alamosa closed at $18.46 Friday.

The plaintiffs are seeking to halt the merger, to impose a constructive trust upon any benefits improperly received by defendants as a result of wrongful conduct and reimbursement of legal fees.

The merger, expected to close in the first quarter of 2006, is pending shareholder approval.

Alamosa is a Sprint-affiliated holding company based in Lubbock. Through its units, it provides mobile phone services under the Sprint PCS brand name and uses Sprint's national network.

-By Ed Welsch, Dow Jones Newswires; 202-862-1356; edward.welsch@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 3rd December 2005