Sprint Nextel Corporation (NYSE:S) receives approval from Federal Communications Commission (FCC)

Posted by Lynn Eisler July 8, 2013 1 Comment 2338 views

The shares of Sprint Nextel Corporation (NYSE:S) plunged to close at $7.16 in trading session of Friday, July 5. This closing number exhibits fall of 0.42%. After opening at $7.19, the stock exhibited an intraday high of $7.21. With average volume of 68.88 million shares in last 90 trading sessions, only 36.94 million shares were traded in session of Friday.

On July 5, the Federal Communications Commission (FCC) gave its absolute approval for SoftBank of Japan to acquire Sprint Nextel Corporation (NYSE:S). The approval is towards the deal of $21.6. As agreed, there will be 78 percent stake of Softbank in Sprint Nextel Corporation (NYSE:S), which is the third biggest wireless carrier in the United States. The original bid by Softbank for purchasing Sprint Nextel Corporation (NYSE:S) awaited the decision by FCC. The approving board of FCC comprised of three members and all of them voted in favor of acquisition by SoftBank. With this, the approval was granted by FCC for Sprint Nextel Corporation (NYSE:S) to be able to purchase the Cleanwire’s outstanding shares.

The CEO of Sprint Nextel Corporation (NYSE:S), Dan Hesse, said in his statement, “Just two years ago, the wireless industry was at the doorstep of duopoly, but with these transformative transactions, we are one step closer to a stronger Sprint which will better serve consumers, challenge the market share leaders and drive innovation in the American economy.”

He further said that this deal will improve competitive position and long term value of Sprint Nextel Corporation (NYSE:S) through generation of a company that will have higher financial flexibility. In the special meeting of shareholders at Sprint Nextel Corporation (NYSE:S) on June 25, around 98 percent votes went in deal’s favor, which comes up to 80 percent of common stock that is outstanding in Sprint Nextel Corporation (NYSE:S)

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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There is 1 Comment

  1. Marshall
    - July 8, 2013
      -   Reply

    why is stock dropping on approval?

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