Sprint, Nextel Shareholders Approve Merger

Shareholders of both Sprint and Nextel Wednesday approved the merger of the two companies. Separately, news service reports claimed that the U.S. Federal Communications Commission (FCC) was also close to approving the merger.

In a statement, Sprint said it expected the deal, which was announced last December, to close in the third calendar quarter of this year. At its shareholder's meeting, Sprint executives told shareholders that the merger will be good for them.

"When you consider the substantial synergies that can be achieved, along with the strong brand and market position that we will enjoy, we believe Sprint Nextel will provide shareholders an even more compelling investment opportunity," Sprint chairman and CEO Gary Forsee said in a statement.

Sprint did not disclose the vote totals or margins but called the results overwhelming. Nextel said that a bit more than 71 percent of its shareholders voted for the merger. And, as expected, Nextel executives praised the coming merger.

"The resounding stockholder support for this merger endorses the smart strategic rationale and the tremendous value creation opportunities before us," Nextel chairman William E. Conway said in a statement.The merged company will be the third-largest wireless operator in the U.S. with more than 40 million subscribers.