Virgin Mobile acquired by Sprint Nextel following shareholder vote

By Lisa Kerner

Charlotte, N.C., Nov. 24 - Sprint Nextel Corp. expects to strengthen its position in the growing prepaid segment following its completed acquisition of Virgin Mobile USA, Inc.

Virgin Mobile shareholders approved the deal at a special meeting on Tuesday.

Under the companies' merger agreement, Virgin Mobile stockholders, excluding Sprint Nextel, the Virgin Group and SK Telecom, will receive 1.3668 shares of Sprint Nextel common stock for each share of Virgin Mobile class A common stock, according to a Sprint Nextel news release.

The Virgin Group will receive 1.2724 shares of Sprint Nextel common stock for each share of Virgin Mobile common stock owned and 149.6941 shares of Sprint Nextel common stock for each share of Virgin Mobile preferred stock owned.

SK Telecom will receive 1.2279 shares of Sprint Nextel common stock for each share of Virgin Mobile common stock and 144.4588 shares of Sprint Nextel common stock for each share of Virgin Mobile preferred stock owned.

According to Sprint Nextel, all of Virgin Mobile's outstanding debt has been retired and its common stock was expected to cease trading on the New York Stock Exchange at the market's close on Tuesday.

Sprint Nextel is an Overland Park, Kan.-based provider of wireless and wireline communications services.

Virgin Mobile is a Warren, N.J.-based provider of wireless communications services.

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