Reuters, Friday, March 26, 1999 at 15:14
NEW YORK, March 26 (Reuters) - Shares in Nextel
Communications Inc. surged to a record high in heavy trade
Friday on speculation the wireless phone company could be a
takeover target.
Nextel, the last independent wireless company with a
national network, was up 3-1/8 to 36-11/16 in late afternoon
trade. The shares hit a record high of 38-11/32 before easing.
Volume was almost four times normal daily levels, at 15.9
million shares. Nextel was the third most-active stock on the
Nasdaq exchange.
Analysts said Nextel's rise was being fueled by market
rumors that the company could become the target of a takeover
bid, especially from MCI WorldCom Inc. (NASDAQ:WCOM).
MCI WorldCom was off 7/8 to 90-1/8.
"That rumor has been on and off for years now. It's on
again today," said Jeffrey Hines, an analyst at BT Alex. Brown.
Spokesmen for Nextel and MCI WorldCom declined to comment
on the speculation.
Carolyn Luther Trabuco, an analyst at Wheat First Union,
said big international phone companies might also be interested
in Nextel.
"I do believe that at some point Nextel will sell, but I
can't say that this is the time," she said.
Copyright 1999, Reuters News Service
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