Subject: [NEXTEL-1] McCaw to Relinquish Control of Nextel, Reduce Stake

From: "marcel_rf1" <[email-masked]>
Date: Thu, 06 Mar 2003 21:03:35 -0000

The real details should be out soon-
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McCaw to Relinquish Control of Nextel, Reduce Stake
03/06 14:32

Reston, Virginia, 
March 6 

Craig McCaw is relinquishing control of Nextel Communications Inc., 
the 
company he helped build 
into the fifth-biggest provider of mobile-phone service in the U.S. 

McCaw, 53, will reduce his stake in Nextel to less than 5 percent 
from 
more than 10 percent two years ago, after the company's share price 
doubled in the past year. He'll lose the right to three of 11 board 
seats 
and control of the committee that names the chief executive officer, 
Nextel said in a statement. 

``Craig McCaw's impact on Nextel will be substantially diminished by 
this,'' said Craig Mallitz, a Legg Mason Wood Walker analyst who 
rates 
the shares ``buy'' and owns them. 

McCaw, who has invested more than $1 billion in Reston, Virginia-
based 
Nextel since 1995, is stepping back amid calls for greater separation 
between U.S. company directors and executives. Nextel's swap of debt 
for 
shares also has made it difficult for the 53-year-old billionaire to 
maintain the 5 percent stake that guarantees him the board seats, a 
top 
associate said. 

``I wouldn't say our faith in Nextel has diminished,'' Tim Bryan, 
chief 
financial officer of McCaw's Eagle River investment company, said in 
an 
interview. Legislators want independent, not inside, board oversight, 
and ``that's the backdrop as we look to do the best thing for 
Nextel.'' 

Nextel signed up more customers than bigger rivals such as Sprint 
Corp. 
last quarter because it sells a unique mobile phone that doubles as a 
walkie-talkie. The allure may dim as competitors race to duplicate 
the 
feature, which is popular with financial traders and construction 
crews. 

Nextel shares slipped 39 cents, or 3 percent, to $12.50 at 2:27 p.m. 
New York time in Nasdaq Stock Market trading. They've fallen from a 
high 
of $82.94 in March 2000. 

Betting on Wireless 

McCaw, who became a billionaire by betting on the fledgling wireless 
industry in the 1980s, will remain Nextel director until next year, 
pending shareholder approval. Bryan will serve on Nextel's board 
until his 
term expires in May 2003. Stephanie Shern, former vice chairman and 
partner at Ernst & Young, will become a director, Nextel said. 

News of McCaw's plan comes two days after Motorola Inc. said it had 
pared its stake in Nextel to 9 percent from 11 percent to take 
advantage 
of the carrier's rising share price. Motorola makes handsets for 
Nextel 
and is the company's biggest investor. 

Over the past year, McCaw has been arranging sales of Nextel stock, 
using forward sales agreements aimed at protecting him against price 
declines. He owned 8.1 percent of Nextel in September. Today, the 
stake is 
``slightly above'' 5 percent, Nextel spokeswoman Audrey Schaefer 
said. 

``McCaw has been looking to diversify his stake, and keep his money 
in 
different pockets,'' said Eric Misenheimer, who holds Nextel debt 
among 
the $500 million in high-yield bonds he helps oversee at Northern 
Trust 
Corp. in Chicago. Because he is known to like the start-up aspect of 
a 
company, rather than the day-to-day grind, ``we don't take this as a 
negative.'' 

McCaw built the first nationwide U.S. wireless company, McCaw 
Cellular 
Communications, and sold it to AT&T Corp. in 1994 for $11.5 billion. 
It's now called AT&T Wireless Services Inc. 

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From: "Wayne Schulz" <[email-masked]>
Date: Fri, 07 Mar 2003 04:04:43 -0000

Everyone sees the DC competiton coming and figures get out while 
they still can. Sure it will take the competitors 6 months to a year 
to eliminate the setup delays of nationwide DC. However once they do 
it won't be pretty for Nextel.