Nextel Lands $107.5 Million from McCaw
By Yuki Noguchi,
Washington Post Staff Writer
Friday, July 27, 2001; 3:07 PM
Craig McCaw, the billionaire telecommunications investor, and his family invested another $107.5 million in Reston-based wireless phone venture Nextel Communications Inc., the company announced today.
In doing so, the McCaw family exercised its option to purchase 10 million shares. The option was to expire on July 28. Nextel was formed as FleetCall Inc. in 1987, and since 1995 the McCaw family has invested $1.1 billion in the company, and with the latest investment owns about 23 percent of Nextel.
"We are strong believers in the company and in the stock," and the McCaw family believes the stock is very undervalued, Bob Ratliffe, a spokesman for Eagle River Investments, Craig McCaw's holding company based in Kirkland, Wash.
Nextel, which is the fifth-largest mobile phone carrier with 7.68 million subscribers in the U.S., targets higher-paying corporate customers.
Craig McCaw is also the founder of Teledesic Corp., a satellite phone firm based in Bellevue, Wash., and XO Communications Inc., a Reston-based provider of Internet and telephone services to businesses.
Shares of Nextel closed yesterday at $17.12 on the Nasdaq Stock Market.
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