Liste Newsletter

Index Performances
EPITEX, EPITA’S INDEX, Dec. 15, 2004: 82.79 (EPITEX set at 100 on Aug. 31, 2001)

News

MARKET FOCUS

U.S. stocks were little changed on Wednesday, as merger news continued to lend support to the market going into the yearend.

As expected, Sprint said it would buy Nextel Communications in a $36-billion deal to create a strong No-3 wireless company offering comprehensive wireless services to businesses and consumers.

The new company could have more than 38 million users and compete better against leaders Cingular Wireless, a joint venture between SBC Communications and BellSouth and Verizon Communications, a joint venture with the U.S. local telecom company and Britain’s Vodafone Group.

Earlier this week, Oracle announced its takeover of enterprise software rival PeopleSoft in a $10.3-billion deal.

OUTLOOK

Symantec will be in the spotlight after confirming reports it intends to buy data storage firm Veritas Software in a stock transaction valued at $13.5 billion.

Profile

Sprint and Nextel Communications have enter into a definitive agreement for a merger of equals that will create a leading wireless carrier augmented by a global IP network.

The new company, Sprint Nextel, will offer consumer, business and government customers new broadband wireless and integrated communications services. It will spin off to its shareholders Sprint’s local telecommunications business following the merger.

Sprint and Nextel currently have a combined total equity value of approximately $70 billion and serve more than 35 million wireless subscribers on their networks and 5 million additional subscribers through affiliates and partners.

The two companies, along with their affiliates and partners, operate networks that directly cover nearly 262 million people, more of the U.S. population than any other carrier.

Sprint Nextel is expected to have the highest average revenue per user (ARPU) in the wireless industry and to be positioned to lead the industry in sustainable revenue growth. Total pro forma revenues for the four quarters ended September 30 for Sprint Nextel were approximately $40 billion, which includes approximately $6 billion in revenues generated by the local telecommunications business.