--ot Sprint delays PCS unit stock offer due to market
KANSAS CITY, Mo., Oct 28 (Reuters) - Telecommunications company Sprint Corp.
(FON - news) on Wednesday said that market conditions has caused it to delay a planned
public offering of a new common stock to track its Sprint PCS digital wireless phone
business, citing market conditions.
Sprint said, however, it still plans to go ahead with a tax-free recapitalization of its common
stock. Sprint said the company will continue to evaluate market conditions and may proceed with the PCS public stock offering
at a later date.
Earlier this year, Sprint, the No. 3 U.S. long-distance telephone provider, said it planned to take ownership and management
control of Sprint PCS from its cable company partners Tele-Communications Inc. (TCOMA - news) (TCOMB - news),
Comcast Corp. (CMCSA - news) and Cox Communications Inc (COX - news).
The company said then it planned to issue shares of a new common stock that tracks the wireless operations, Sprint PCS
stock, to the cable partners in exchange for their interests. At that time, Sprint said it would also launch an initial public offering
of that stock later this year. The IPO was intended to raise about $600 million.
Sprint said it still plans to hold a special shareholder meeting on Nov. 13 to vote on the restructuring of Sprint PCS, the issuing
of PCS stock and the recapitalization.
Under the recapitalization of Sprint stock, each share of Sprint's publicly traded stock will be reclassified into a half share of
PCS stock (under the symbol ''PCS'' on the New York Stock Exchange) and one share of a newly created Sprint common
stock (under the symbol ''FON'', as it is currently traded).
Shares of Sprint closed on Tuesday at 76-9/16.
More Quotes and News:
TCOMB - news; FON - news; COX - news; CMCSA - news; TCOMA - news
Related News Categories: IPOs, US Market News
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