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To: Rono who wrote (9307)	8/13/1999 11:21:00 AM
From: SteveG	Respond to of 10227

SSB: NXTL: Potential to Acquire Nextwave Spectrum...A Good Thing. Salomon Smith Barney Friday, August 13, 1999 --SUMMARY:--Nextel Communications--Wireless Services NXTL announced late 8/11 that it has received an endorsement from the FCC and DOJ for a plan to acquire Nextwave's PCS assets out of Chapter 11. Nextwave bid on 165mm pops in C,D-F blk auctions (10-30MHz/mkts) but later filed ch.11 due to financing difficulties. The court reduced the debt 90%. NXTL has yet to formally approach Nextwave or its creditors and we are aware that Nextwave was in the process of raising private equity. A deal would be positive for NXTL, clearing one of our major concerns, as it improves NXTL's cost model & better positions it for 3G. We believe price would be at least $20-$40/pop, or $3.2-$6.6 billion. *Expect much maneuvering as AT&T, Sprint PCS, BEL, and others will attempt to thwart such a combination given strategic impact this would have. Net-net: A good thing if it happens but we are in chap. 3 of 10 chapters. --EARNINGS PER SHARE-------------------------------------------------------- FYE 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year Actual 12/98 EPS $(1.53)A $(1.45)A $(1.56)A $(1.43)A $(5.97)A Previous 12/99 EPS $(1.66)A $(1.04)A $(1.25)E $(0.94)E $(4.89)E Current 12/99 EPS $(1.66)A $(1.04)A $(1.25)E $(0.94)E $(4.89)E Previous 12/00 EPS $N/A $N/A $N/A $N/A $(3.60)E Current 12/00 EPS $N/A $N/A $N/A $N/A $(3.60)E Previous 12/01 EPS $N/A $N/A $N/A $N/A $(2.50)E Current 12/01 EPS $N/A $N/A $N/A $N/A $(2.50)E Footnotes: --FUNDAMENTALS-------------------------------------------------------------- Current Rank........:3S Prior:No Change Price (8/12/99).....:$53.13 P/E Ratio 12/99.....:N/Ax Target Price..:$53.00 Prior:No Change P/E Ratio 12/00.....:N/Ax Proj.5yr EPS Grth...:0.0% Return on Eqty 98...:N/A% Book Value/Shr(99)..:-4.40 LT Debt-to-Capital(a)66.6% Dividend............:$N/A Revenue (99)........:3068.00mil Yield...............:N/A% Shares Outstanding..:291.6mil Convertible.........:Yes Mkt. Capitalization.:15492.7mil Hedge Clause(s).....: Comments............:(a) Data as of the most recently reported quarter. Comments............: --OPINION:------------------------------------------------------------------

To: Rono who wrote (9307)	8/13/1999 11:35:00 AM
From: SteveG	Read Replies (1) \| Respond to of 10227

i agree - no way they pay anyway near C block's $40/pop - UNLESS their is a bidding war (from WCOM, say which is probably not as likely as WCOM buying a GSM rollup) According to DBAB's Bo Fifer, Nextwave's argument to the bankruptcy court was that by the time the government delivered the licenses, they weren't worth $5B, but only $1B. The bankruptcy court agreed. This would yield ~$7/pop. Probably higher than this, but I don't see anywhere near $40/pop.

To: Rono who wrote (9307)	8/18/1999 3:31:00 PM
From: Rono	Read Replies (2) \| Respond to of 10227

NextWave, Nextel Put on Hold Their Dispute Over Spectrum Buy NextWave, Nextel Put on Hold Their Dispute Over Spectrum Buy Hawthorne, New York, Aug. 18 (Bloomberg) -- NextWave Telecom Inc., a bankrupt telecommunications company, and Nextel Communications Inc. have put on hold a dispute over Nextel's plans to pursue the purchase of radio spectrum that NextWave won at auction, a NextWave attorney said. Nextel has agreed to halt moves to buy the bandwidth in bankruptcy proceedings, said NextWave bankruptcy attorney Deborah Schrier-Rape. NextWave on Friday secured an order in U.S. Bankruptcy Court temporarily barring Nextel from purchasing the spectrum to augment its wireless services. ``Right now, Nextel and NextWave are not litigating with each other,' Schrier-Rape said. The companies' agreement heads off an Aug. 25 hearing in U.S. Bankruptcy Court in White Plains, New York on NextWave's motion for a permanent injunction against Nextel, Schrier-Rape said. Officials at Nextel weren't immediately available for comment. Last week, Nextel said it had received approval to pursue the purchase of the spectrum at issue from the U.S. Federal Communications Commission and the Justice Department. In seeking its temporary restraining order last week, NextWave argued that Nextel's talk of buying the spectrum interfered with its exclusive right to file a bankruptcy reorganization plan. NextWave bid about $4.8 billion for the spectrum in 1996, though it's only paid about $500 million toward the purchase price, which a judge reduced to just over $1 billion. Reston, Virginia-based Nextel, which is controlled in part by cellular pioneer Craig McCaw, could use the spectrum to offer advanced services, such as high-speed wireless Internet access. A confirmation hearing on NextWave's plan to exit bankruptcy proceedings is scheduled for Sept. 8, Schrier-Rape said. Reduced Payment Separately, U.S. District Judge Denny Chin in Manhattan yesterday denied a request by the FCC to postpone implementation of an earlier ruling that reduced NextWave's payment to the Federal Communications Commission for the spectrum, Schrier-Rape said. Officials at the FCC, NextWave's biggest creditor, weren't immediately available for comment. Last Thursday, Hawthorne, New York-based NextWave said that if its bankruptcy plan is approved by the court, its licenses will be paid for in full and ``placed into productive use very rapidly.' NextWave would then begin selling wireless capacity to other carriers, including Nextel, it said. Nextel shares, which have more than doubled this year so far this year, fell 2 5/16 to 57 5/16.