iPCS investor Greywolf says Sprint Nextel's offer price is too low

By Lisa Kerner

Charlotte, N.C., Nov. 16 - iPCS, Inc. shareholder Greywolf Capital Management LP opposes the company's sale to Sprint Nextel Corp. at what it calls "the bargain price of $24 per share."

Greywolf, an 8.2% shareholder, made its comments in a letter to iPCS' board of directors included in a schedule 13D/A filed with the Securities and Exchange Commission on Monday.

"It is our opinion that the $24 takeout price reflects neither the fundamental business value of iPCS nor the value of iPCS's breach of contract claims against Sprint," the letter said.

"This is a great deal for Sprint, but the price for iPCS shareholders is far too low," Greywolf said.

The offer does not adequately reflect the value of iPCS's successful litigation against Sprint, according to the investor.

Greywolf said while it does not intend to tender its shares in the offer that ends on Nov. 25, it would review a revised deal from Sprint Nextel if the offer is rejected.

Sprint Nextel announced on Oct. 19 that it will acquire iPCS in a deal valued at approximately $831 million, including the assumption of $405 million of net debt.

Based in Schaumburg, Ill., iPCS owns and operates Sprint Nextel's nationwide PCS network.

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

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