November 24, 2000
Dow Jones Newswires
Nextel Sees $275M Pretax Gain In 4Q From
Clearnet Merger
WASHINGTON -- Nextel Communications Inc. (NXTL) will record a
pretax gain of $275 million in the fourth quarter of 2000 on the acquisition of
Clearnet Communications Inc. (CLNT) by Telus Corp. (T.T), according to
Nextel's most recent Form 10-Q filed with the Securities and Exchange
Commission.
Nextel's subsidiary, Nextel International, held a 14% stake in Clearnet prior
to the merger, which closed in October.
As a result of the merger, Nextel International has entered into a lock-up
agreement with Telus under which it has agreed not to dispose of any of its
Telus shares until October 2001.
In exchange for its 8.4 million shares of Clearnet, Nextel International
received about 13.7 million shares of Telus, representing about 4.8% of the
ownership interest in the combined company.
Telus acquired Clearnet for cash and stock valued at C$6.6 billion, including
the assumption of Clearnet debt.
Telus and Clearnet are communications companies.
Nextel International, Reston, Va., provides wireless communications services.
In other news, Nextel International's Mexican operating unit purchased
licenses and telecommunications assets from Infra Mobil SA de C.V. for
$110.5 million in November, the company reported in the SEC filing.
In October, Nextel International, through the same unit, entered into an
agreement with an entity in Mexico to purchase additional spectrum for a
purchase price of about $5.5 million.
The closing of this acquisition is subject to conditions, including regulatory
approvals, the filing last week said.
-Chad Clinton, Dow Jones Newswires/Federal Filings Business News;
202-628-9798 |
