Sprint plans to eliminate the separate tracking stocks for its PCS and FON divisions, reflecting a decision to merge the once separate traditional phone and wireless services into a single operation. As a result, the PCS common stock will be eliminated and each share of PCS common stock will convert automatically into .50 shares of FON common stock on April 23, 2004.
Sprint said the move would facilitate its transformation into a company focused on the needs of two customer types — business and consumer — by removing barriers to its ability to target more effectively its customers with a full suite of integrated products and services. The integration is also expected to more closely align Sprint’s capital structure with the company’s evolving integrated operational focus in view of increased convergence of wireless and wireline offerings throughout the telecommunications industry.
Sprint created the tracking stocks in 1998 in connection with its acquisition of 100 percent ownership of Sprint PCS. Although Sprint created two tracking stocks, it has remained a single corporation with a single board of directors. Sprint said there are no regulatory approvals or other conditions that must be satisfied prior to the recombination becoming effective. http://www.sprint.com
