merger question for nextel18
Here's a question for you Nextel18. Who bought who? Did Sprint buy Nextel or did Nextel buy Sprint?
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I'm not nextel18 . . . but I believe the officialy press releases referred to it as "a merger of equals." So technically neither company bought the other - they formed a partnership.
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Well I guess you already have the answer Nextel18. Unless you have "information" to the contrary?
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not 100 percent correct though. it is a merger of equals, however, as i explained to that scorpio girl, in order to do the proper tax free spin off of the local division sprint would have to be the "buyer". thus; sprint has 51 percent ownership and nextel has 49 percent. hope that helps.
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sprint bought nextel, however, its considered a merger of equals. to do the tax-free local spin off sprint needed to be the owner or buyer of the combined company. its 51 to 49 percent ownership. 51= sprint, 49= nextel.
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That's common practice when companies merge. For instance, I believe that Vodafone owns something like 54% of Verizon, but they are still considered partners. What happened was that Vodafone had greater assets that Verizon (by a little bit at least), so they were given a slightly larger share in the new partnership and I think they also paid their shareholders a dividend as compensation for the fact that they would be get 1 share in the new company for each share they held previously in Vodafone even though Verizon shareholders got the same deal. I think the situation with Sprint and Nextel is similar. There is no exact line between a merger and a buy-out other than intentions (maybe). The companies both said they were merging and that ...
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vodaphone owns 45 percent of verizon wireless, not 54 percent, but thats ok.
again, the whole purpose for the sprint buyout is becuase of the proper tax-free spin off of its local division. if nextel were to be in control (ie owns 51 percent) the local spin off wouldnt be tax free and would be difficult.
again, the whole purpose for the sprint buyout is becuase of the proper tax-free spin off of its local division. if nextel were to be in control (ie owns 51 percent) the local spin off wouldnt be tax free and would be difficult.
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Sorry, I flipped my digits there. My point was this - even though for tax purposes Sprint bought Nextel, on a practical level, they are equals. This is not the same as Cingular buying AT&TW, or SBC buying AT&T, or Verizon buying MCI.
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no problem. i just wanted you to make sure the correct number. yea, your point is very valid.
by the way verizon buying mci isnt 100 percent done yet, becuase qwest might still have a shot, so lets not say thats 100 percent final yet.
by the way verizon buying mci isnt 100 percent done yet, becuase qwest might still have a shot, so lets not say thats 100 percent final yet.
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Yeah . . . but if I were MCI, I would rather partner with a relatively succesful company like Verizon, than with Qwest, which has had a lot of the same problems that MCI has. People (and companies) don't always make rational decisions though . . .
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yea, i would agree with you, however, qwest could be suing and then there could be a proxy fight and a court fight. this fight isnt over yet. they are all public companies so the board has to give fiduciary responsibility for all offers.
verizon doesnt need mci, but they know qwest does.
verizon doesnt need mci, but they know qwest does.
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