Sprint iPCS Acquisition Opposed - InformationWeek
IoT
IoT
Mobile
News
11/18/2009
01:42 PM
50%
50%
RELATED EVENTS
[Dark Reading Crash Course] Finding & Fixing Application Security Vulnerabilitie
Sep 14, 2017
Hear from a top applications security expert as he discusses key practices for scanning and securi ...Read More>>

Sprint iPCS Acquisition Opposed

A key iPCS investor said the acquisition price is far too low considering Sprint Nextel paid more for similar-sized affiliate networks.

A key investor in iPCS said it is opposed to the looming acquisition by Sprint Nextel because the $831 million deal severely undervalues iPCS.

Greywolf Capital Management has an 8.2% stake in iPCS, and it said Sprint's $24 per share offer does not reflect the fair business value of iPCS, or the value of the litigation between iPCS and Sprint. Sprint's offer represented roughly a 34% premium over iPCS' stock price, but Greywolf said an offer of $34 to $47 a share would be more in line with how much Sprint has paid for similar affiliate networks.

The move will likely not derail the deal because other major investors are supporting the acquisition, and iPCS' board of directors has unanimously recommended that shareholders agree to the deal. But the opposition may delay the completion of the deal, which Sprint wanted to close by the end of the year.

A completed iPCS acquisition would remove a number of legal hurdles for Sprint to continue to operate its iDEN network, as well as roll out WiMax services in the Midwest markets. The companies had been embroiled in contentious litigation regarding the right to offer services in Illinois, Indiana, Iowa, Michigan, Ohio, Pennsylvania, and Tennessee. In February, a court ordered Sprint to stop operating its iDEN network in the impacted markets by early 2010, but the acquisition will settle all pending legal issues.

In a related note, iPCS also said Wednesday it had settled with other shareholders who had sued in opposition of the acquisition. Terms of the deal were not disclosed.


InformationWeek Analytics has published an independent analysis on application delivery. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll