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Financial Crisis Could Hurt Nextel Sale, Alltel Buy

The upheaval in U.S. financial markets is squeezing wireless companies, particularly those eager to sell off major assets like Alltel (NYSE: AT) and Sprint Nextel (NYSE: S).

Sprint has been working for months to sell off its Nextel unit, and various offers for $5 billion to $6 billion for the operation are reported to have made. That's well below the $35 billion that Sprint paid for Nextel a few years ago.

According to a report on FT.com, Sprint CEO Dan Hesse recently questioned whether any potential buyer of the Nextel unit could raise the necessary capital to fund the purchase. That means the credit crunch could place any deal in jeopardy. No matter, said Hesse, who has vowed to continue improving the Nextel operation whether a buyer comes along or not.

Read the full story at InformationWeek.com.

— W. David Gardner, InformationWeek

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