Sprint, Nextel Eye Growth, Cost Reductions

Nextel noted that the deal could trigger a put right owned by its publicly traded affiliate Nextel Partners , which sells wireless services in a handful of U.S. cities. The price of that buyback will be determined after an interval that could "extend for a substantial period of time after completion of the merger." Nextel owns 32% of Nextel Partners.

While the agreement is now publicly formalized, it could still face hurdles if Verizon decides to step in with its own bid for Sprint. The Wall Street Journal reported that Verizon this week received a blessing from wireless partner Vodafone(VOD) to make a bid after considering one for more than a year.

On Wednesday, the newspaper said Verizon has made no decision on a Sprint takeover offer, and it appeared no closer to one than it was earlier in the week. The Sprint-Nextel deal reportedly includes a $1 billion breakup fee that would have to be paid by a hostile acquirer.

>To order reprints of this article, click here: Reprints