In a soon to be landmark day for Sprint, its full steam ahead as Sprint recieves all regulatory approvals required to tender their offer on IPCS. On November 23rd the Public Service Commission of West Virginia granted their blessing over the transaction following a joint petition filed by the two companies. November 24th brought about the approval of the FCC, and on November 10th the Hart-Scott-Rodino waiting period applicable to the transaction completed. The Hart-Scott-Rodino act is an ammendment to the Anti-Trust laws to the United States. The ammendment requires companies to file a notice with the FTC, and the Assistant Attorney general of the anit-trust division of the Department of Justice with the description of the transaction and all parties involved. This required waiting period on this act as it pertains to this transaction expired November 10th. All provisions of the previous tender offer will remain unchanged, and will be conducted by Ireland Aquisition Corporation, a wholly-owned susidiary of Sprint. The offer is set to expire Midnight tonight (11/25/2009). The existing offer will provide IPCS shareholders with $24 cash (less any required withholdings and taxes) for each share of IPCS stock. Boardmembers of IPCS have unanimously urged their shareholders to cash in their stock, and where nessesary adopt the merger agreement. Following a completion of the tender offer IPCS will become a wholly-owned subsidiary of Sprint Nextel. Completion is anticipated prior to the end of 2009.
Showing posts with label IPCS. Show all posts
Showing posts with label IPCS. Show all posts
Sprint announced today that they intend to move forward with the tender offer they have placed on IPCS. If the deal goes through standard regulatory approvals, it would mean IPCS will become a wholy owned subsidiary of Sprint Nextel Corp. This would also end the massive legal battles that have been flying between the two companies since Sprint purchased Nextel a few years ago. Sprint will purchase all reamaining shares of IPCS common stock at a price of $24.00 per share. Provisionaly IPCS stock holders have a withdrawl right that will last until Midnight (NY time) November 25th 2009. Sprint expects the aquisition to complete late 4th quarter 09 to early first quarter 2010. This offer is expected to move very quickly.
The ramifications of for Sprint to become a wholy owned company are imense. This will hopefuly allow them to stay out of court and stop putting dumping useful resources into the trash can. The liquidity it will offer the company to regain a competitive position in the market place is phenomenal. No more device issues, consolidated customer care centers, one set of rules. Sprint has been working so hard to improve their customer care, and this is just the ticket to bail out their efforts.
In a very strange move this week by Sprint, 3,300 CDMA and IDEN towers will be sold to TowerCo for $670 Million in cash. "..this transaction provides Sprint Nextel with additional liquidity which gives us greater flexibility in managing our company." said Bob Azzi, senior vice president, Field Engineering and Operations, Sprint Nextel. The deal is still subject to all standard closing conditions, but is expected to be approved withing 90 days.
Sprint has been struggling since the acquisition of Nextel and the IDEN network fiasco. Lately Sprint has been struggling with poor customer service. I have to wonder how getting rid of your network will improve the way your customers are treated. Sprints biggest problem has been presented in the form of Illinois PCS or IPCS. IPCS is a Sprint affiliate that has taken the opportunity to sue Sprint Nextel at every turn. I can't help but think that we will see a lawsuit again for breach of this affiliate agreement. Unless this is Sprints way of trying to rid themselves of IPCS for good. In the event another company owns the network assets to Sprint, and the lease of their own transmission from TowerCo does not include the ability to sublet, then IPCS will be forced to also lease frequency from TowerCo to give their customers the network they once enjoyed out of the main area. This would then put IPCS competing directly against Sprint outside of their affiliate market area for the first time putting them in breach of the affiliate agreement that they flagrantly issue lawsuits over. Unification of Sprints internal hierarchy would certainly improve customer service. I would have to believe this is a power play from Sprint Nextel, but only time will tell.
More on the sale of towers at SPRINT
Sprint and IPCS are at it again. You may remember IPCS from the Sprint Nextel Merger debocle. IPCS is again claiming that a deal involving Sprint is going to violate their non-compete clause. Sprint and Clearwire are currently working together to build a nation wide WiMax network as a joint venture. Sprint has also filed a suit of their own against IPCS in Deleware.
