Nextel promises Nextel Partners pact compliance

[ComicalMoodyDan]

Nextel promises Nextel Partners pact compliance
Published: July 6, 2005, 2:56 PM PDT
By Reuters

NEW YORK--Nextel Communications said on Wednesday it will fully comply with its obligations to Nextel Partners Inc., after complaints that Sprint's proposed takeover violates its agreements with Nextel Partners.

The comments in a regulatory filing come a day after Nextel Partners--a provider of wireless services under the Nextel brand--said it filed a lawsuit against Nextel Communications over branding concerns related to the merger.

Nextel Communications said it is continuing to refine its post-merger branding strategy with Sprint and it will comply with agreements with Nextel Partners. The $36 billion Sprint/Nextel deal is expected to close in August.

Nextel Partners is 32 percent owned by Nextel Communications, and its shareholders have the option to require a combined Nextel and Sprint to buy the remaining 68 percent.

But since last week Nextel and Nextel Partners have been bickering about issues such as branding and how a Nextel Partners deal should be valued.

Sprint plans to keep its name as the main brand for the combined company and keep the Nextel brand for some services. Nextel Partners said on Monday that it should be included in any branding changes at Nextel Communications.

Nextel promises Nextel Partners pact compliance