Alamosa (NASDAQ:APCS)
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From May 2019 to May 2024
Alamosa Holdings, Inc. (Nasdaq/NM:APCS) today announced
that its wholly-owned subsidiary, AirGate PCS, Inc., has filed a
complaint against Sprint Corporation, certain of its affiliates and
Nextel Communications, Inc. in the Delaware Court of Chancery
alleging, among other things, that following the completion of the
pending merger between Sprint and Nextel, Sprint will breach the
exclusivity covenants contained in the agreements governing its
relationship with AirGate and that Nextel unlawfully interfered with
AirGate's exclusive rights under such agreements. The complaint seeks,
among other things, an order directing Sprint and its affiliates to
specifically perform their contractual obligations under their
agreements with AirGate, an injunction preventing Sprint and Nextel
from taking any action or entering into any agreement that would
violate the exclusivity covenants contained in the agreements, a
declaratory judgment declaring the rights, remedies and obligations of
the parties under the agreements, and damages.
As previously disclosed, since Sprint's public announcement of its
intention to merge with Nextel, Alamosa has continually attempted to
engage in productive discussions with Sprint in an attempt to resolve
the issues raised by its pending merger with Nextel. Alamosa now has
come to believe, however, that it is unlikely that the parties will be
able to reach a mutually acceptable agreement prior to the closing of
the merger.
"Neither Sprint nor Nextel should be allowed to breach previous
agreements in pursuit of their goals," stated David E. Sharbutt,
Chairman and Chief Executive Officer of Alamosa. "Sprint agreed that
AirGate and Alamosa would be the exclusive providers of wireless
services in their territories and that they would be entitled to
specific performance of their agreements with Sprint, and we expect
Sprint to fulfill its contractual commitments to AirGate and Alamosa."
ABOUT ALAMOSA
Alamosa Holdings, Inc. is the largest (based on number of
subscribers) PCS Affiliate of Sprint (NYSE:FON), which operates the
largest all-digital, all-CDMA Third-Generation (3G) wireless network
in the United States. Alamosa has the exclusive right to provide
digital wireless mobile communications network services under the
Sprint brand name throughout its designated territory located in
Texas, New Mexico, Oklahoma, Arizona, Colorado, Utah, Wisconsin,
Minnesota, Missouri, Washington, Oregon, Arkansas, Kansas, Illinois,
California, Georgia, South Carolina, North Carolina and Tennessee.
Alamosa's territory includes licensed population of 23.2 million
residents, including 15.8 million residents in Alamosa's territories
and 7.4 million residents in the recently acquired AirGate properties.
FORWARD LOOKING STATEMENTS
Statements contained in this news release that are forward-looking
statements, such as statements containing terms such as can, may,
will, expect, plan, and similar terms, are subject to various risks
and uncertainties. Such forward-looking statements are made pursuant
to the "safe-harbor" provisions of the Private Securities Litigation
Reform Act of 1995 and are made based on management's current
expectations or beliefs as well as assumptions made by, and
information currently available to, management. A variety of factors
could cause actual results to differ materially from those anticipated
in Alamosa's forward-looking statements, including the following
factors: Alamosa's dependence on its affiliation with Sprint; shifts
in populations or network focus; changes or advances in technology;
changes in Sprint's national service plans or fee structure with us;
change in population; difficulties in network construction; increased
competition in our markets and adverse changes in financial position,
condition or results of operations. For a detailed discussion of these
and other cautionary statements and factors that could cause actual
results to differ from Alamosa's forward-looking statements, please
refer to Alamosa's filings with the Securities and Exchange
Commission, especially in the "risk factors" sections of Alamosa's
Annual Report on Form 10-K for the year ended December 31, 2004 and in
subsequent filings with the Securities and Exchange Commission.
Investors and analysts should not place undue reliance on
forward-looking statements.