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Sprint Nextel Corporation (NYSE:S) Investor Alert: Lawsuit against 70% Stake Sale of Sprint Nextel

A lawsuit was filed for current investors in shares of Sprint Nextel Corporation (NYSE:S) in effort to block the proposed sale of 70% of Sprint Nextel.NYSE:S stockholders should contact the Shareholders Foundation at mail@shareholdersfoundation.com

 
 
mail@shareholdersfoundation.com
mail@shareholdersfoundation.com
PRLog - Dec. 4, 2012 - An investor in shares of Sprint Nextel Corporation (NYSE:S) filed a lawsuit in effort to stop the proposed 70% stake sale of Sprint Nextel to Softbank.

If you purchased shares of Sprint Nextel Corporation (NYSE:S) prior to October 15, 2012, and currently hold any of those NYSE:S shares, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Sprint Nextel Corporation (NYSE:S) reported that its annual Revenue rose from over $32.56 billion in 2010 to over $33.67 billion in 2011 and its Net Loss over the respective time periods decreased from over $3.46 billion to $2.89 billion.

On 15 October 2012, SOFTBANK CORP. and Sprint Nextel Corporation (NYSE: S) announced that they have entered into a series of agreements under which SoftBank Corp. will invest $20.1 billion in Sprint, consisting of $12.1 billion to be distributed to Sprint stockholders and $8.0 billion of new capital to strengthen Sprint’s balance sheet.

Through the proposed transaction, approximately 55% of current Sprint shares will be exchanged for $7.30 per share in cash, and the remaining shares will convert into shares of a new publicly traded entity, New Sprint. Following closing, SoftBank will own approximately 70% and Sprint equity holders will own approximately 30% of the shares of New Sprint on a fully-diluted basis.

However the plaintiff alleges that Sprint Nextel Corporation is selling itself too cheaply via an unfair process to SoftBank Corp.  Indeed, At least one analyst has set the high target price for NYSE:S shares at $11.00 per share.
The plaintiff claims that the board of directors failed their duty to maximize stockholder value. He says that rather than conduct an auction of the company or other market check to determine the highest available price for Sprint, in the span of approximately one week the board quickly abandoned its long-standing plan to grow through strategic acquisitions and instead sold control of Sprint to SoftBank for an inferior price in the sweetheart transaction that favored SoftBank's interests.

Furthermore, so the plaintiff, that board of directors agreed to certain preclusive deal protection devices, such as a $600 million termination fee, a $75 million cost reimbursement requirement, and a matching right provision.

Those who purchased shares of Sprint Nextel Corporation (NYSE:S) prior to October 15, 2012, and currently hold any of those NYSE:S shares, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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Contact Email:
***@shareholdersfoundation.com Email Verified
Source:Shareholders Foundation, Inc.
Phone:+1-(858)-779-1554
Zip:92108
City/Town:San Diego - California - United States
Industry:Business, Finance
Tags:sprint nextel corporation, nyse s
Shortcut:prlog.org/12035861
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