The battle between the two Nextel namesakes continued last week when Kirkland-based Nextel Partners filed a response to Nextel Communications'...
The battle between the two Nextel namesakes continued last week when Kirkland-based Nextel Partners filed a response to Nextel Communications’ questions regarding the company’s valuation.
Nextel Communications, based in Reston, Va., is merging with Sprint, and the combined entity, to be called Sprint Nextel, may be required to purchase Nextel Partners once the merger closes later this year. Shareholders of Partners, which provides Nextel-branded services in smaller markets, will make the decision on whether to sell.
But the real question is at what price.
The original agreement states Nextel Partners will be sold based on fair market value. Nextel Communications questioned how that process might play out.
Nextel Partners response in the filing: “While we are not going to play the game that Nextel [Communications] has decided to play of trying to predict the outcome of the appraisal process, we believe Nextel’s view of the valuation process is simply wrong.”
For weeks, rumors have been surfacing that Deutsche Telekom might be considering selling its U.S. arm, T-Mobile USA.
In some ways it makes sense. Consolidation has hit the telecom industry in a massive wave, with Cingular Wireless buying AT&T Wireless, Sprint purchasing Nextel Communications and Alltel purchasing Western Wireless. All the sales were at prices reflecting a demand for growth.
But reports on Friday implied that Bellevue-based T-Mobile USA — the fourth-largest carrier in the United States — would not be able to fetch as high of a price as the others. Some think the $30 billion price investors are throwing around is too much, according to a Reuters report.
The valuation would have to take into account the investment the U.S. carrier would need to purchase spectrum and roll out high-speed data networks to keep up with its competitors.
But valuation might be moot. In an interview in Euro am Sonntag, Deutsche Telekom T-Mobile unit Chief Executive Rene Obermann said he has no plans to sell.
“To examine all offers is part of the duty of any management board member,” Obermann told the magazine. “But let me make a very clear statement: T-Mobile USA is and remains an integral part of our strategy.”
Small and big
Bothell-based Lumera, which went public a year ago, says it will need to double its space.
The nanotechnology company has entered into a lease that will increase the amount of space from 16,000 square feet to 32,172 square feet for office and research laboratories.
Scott Pace, a company spokesman, said the firm will use the space for growth. When a neighboring tenant moved out, it seemed like a good time to secure the space.
That’s a lot of space for a company building something so small.
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