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One Step Forward Two Steps Back For Sprint Nextel Merger

Jul 29, 2005, 2:01 PM by (staff)

Sources inside the FCC have said the agency is close to approving the Sprint Nextel merger. According to TheDeal.com, the wireless telecommunications bureau has recommended approval and a final report has been circulated to the commissioners. Sprint, however, continues to face resistance from their affiliates. In addition to 2 standing lawsuits from iPCS and Ubiquitel, 3 additional suits against Sprint have been filed in US courts this week. As with previous suits, the new suits allege Sprint's merger with Nextel violates Sprint's non-compete with the affiliates. Sprint has agreements preventing iPCS or Horizon/Bright, which brought suit this week, from seeking an injunction on the merger, Ubiquitel's request for an injunction was recently denied.

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Comments

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RUFF1415

Jul 29, 2005, 2:49 PM

Uh oh.

Why hadn't Sprint and Nextel thought of these imminent lawsuits before they announced plans to merge? Or had they and just responded with a 'we don't give a crap' attitude?

johall15

Not quite. From the time that the merger was announced, Sprint has been in contract negotiations with the affiliates. My guess is that for the affiliates that have now filed lawsuits, these negotiations have not gone to their liking.

FAN20JGR

I think they did. But you have to remember, that the reward for both companies id far grater than the risk of $ loss from lawsuits. I honestly think thye are going to ride out the suits and pay only where they have to to get this done and within I'd s...
(continues)

...

muchdrama

RUFF1415 said:
Why hadn't Sprint and Nextel thought of these imminent lawsuits before they announced plans to merge? Or had they and just responded with a 'we don't give a crap' attitude?

The execs knew these lawsu...
(continues)

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