Nextel Shares Rise on Speculation of MCI WorldCom Acquisition
McLean, Virginia, March 26 (Bloomberg) -- Shares of Nextel Communications Inc., a wireless phone-service provider, rose as much as 12 percent amid speculation the company will be acquired by MCI WorldCom Inc.
Nextel rose 3 1/16 to 36 5/8 in early afternoon trading of 11.5 million, making it fourth most active stock in U.S. markets. Earlier, the shares touched 37 7/16. MCI WorldCom declined to comment, and Nextel officials weren't immediately available.
Investors expect MCI WorldCom, the No. 2 U.S. long-distance company, to buy its way into the wireless business to help it compete with No. 1 long-distance provider AT&T Corp. and No. 3 Sprint Corp. Nextel is seen as a good fit for MCI WorldCom, since it has a nationwide reach and both companies focus primarily on business customers.
''The unsubstantiated rumor today is that MCI WorldCom will buy them,'' said Jeffrey Hines, an analyst at BT Alex. Brown Inc., who rates Nextel ''strong buy.''
MCI WorldCom Chief Executive Bernard Ebbers in the past has said he's interested in wireless, though he's wary of the hit buying a cellular company would make on MCI WorldCom's earnings.
MCI WorldCom shares fell 15/16 to 90 1/16.
13:05:28 03/26/1999
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