Sprint Nextel to aquire rest of Nextel Partners

Dec 21 2005 - 10:28 AM ET | Sprint Nextel

In another affiliate buyout deal, Sprint Nextel will buy the remaining shares of Nextel Partners for $6.5 billion. Nextel Partners provides Nextel branded service in rural areas. After the Sprint buyout of Nextel, Nextel Partners contended that its exclusivity contract was violated (since Sprint provides service in some of the same areas as Nextel Partners).

The two companies have haggled for months for a valuation, eventually depending on the average of two appraisers. After the Sprint/Nextel merger, stock of Nextel Partners surged 50% making the deal much more costly.

The deal is expected to close in the first half of 2006.