Sprint Finding Possible Nextel Buyers
It’s no secret that Sprint/Nextel has been looking to shorten its name to just one syllable, but the big question is how can it be done, and who is willing to take Nextel off the struggling company’s hands?
According to the Wall Street Journal, Sprint has found potential interest in a Latin American company by the name of NII Holdings, and a private-equity firm called Cerberus Capital Management. Sprint says these two, in addition to other unnamed companies, are within days of entering a second round of bids.
Sprint has been considering either a sale of Nextel or even possibly a spinoff. The factors causing the sale of Nextel to be rather difficult include the cost of separating the Nextel unit, as well as the possible debt Sprint would try to pawn off on the buyer.
No word on what the interested companies are willing to pay to buy the unit, but the original purchase of Nextel by Sprint in 2005 has been valued at $35 billion.