Sprint Nextel Disputes Affiliate's Valuation
Sprint Nextel is asking a judge to intervene in a dispute over the methods used to value its planned acquisition of affiliate Nextel Partners. Reston-based Sprint Nextel disagrees with Nextel Partners' interpretation of the "put right" that lets the company force Sprint Nextel to buy the 68 percent of Nextel Partners that it doesn't already own.
In a lawsuit filed Friday, Sprint Nextel said that Nextel Partners' valuation method is "unsupportable" and contrary to what is spelled out in the agreement. Sprint Nextel will buy the company after its shareholders' vote, set for Oct. 24, and a "fair market value" has been determined by appraisers.
If a sale is authorized, an appraiser for each company will determine the fair market value of Nextel Partners. A third appraiser would be needed if the two valuations were more than 10 percent apart. Sprint Nextel wants a judge to prevent Nextel Partners from making public the value determined by its appraiser, claiming it may taint the third appraiser.
EntreMed Plans Arthritis Drug Tests
EntreMed said it plans to file with the Food and Drug Administration next year to begin human trials of an experimental rheumatoid arthritis drug that was effective in lab rats.
Researchers found that daily doses of 2-methoxyestradiol, or 2ME2, significantly reduced the severity of joint inflammation and damage in rats with arthritis, the Rockville biotechnology company said. It added that researchers also found that the drug significantly delayed the onset of arthritis in rats.
MERGERS & ACQUISITIONS
Rent-A-Wreck to Be Bought
Rent-A-Wreck said it is being bought by closely held San Diego Car Rentals in a transaction that is expected to close in November. Under the deal, holders of Rent-A-Wreck stock would receive 36 cents a share in cash for each share of common stock and 86 cents in cash for each preferred share they own, Owings Mills-based Rent-A-Wreck said in statement.
Car Rentals chief executive Thomas L. Gruber will become Rent-A-Wreck's chief executive and sole director. He will replace Kenneth Blum Sr., who is retiring, Rent-A-Wreck spokesman Jason Manelli said.
Compiled from staff and news service reports.