Investors were giving an early nod to Spint's ( FON) FON division in its plan to issue about 500 million shares to acquire the outstanding Sprint PCS ( PCS) tracking shares.

FON shares were recently fetching $18.15 on the Instinet premarket, up from their Friday close of $17.73, while PCS shares were trading at $8.85, down from $9 Friday.

Sprint FON will issue half a share for each of the roughly 1 billion PCS share outstanding and pay a 12.5-cent dividend to all its outstanding shares at a record date in June 2004. That's currently worth roughly $9.14 a PCS share.

Sprint divided its operations six years ago to help promote the wireless unit. The recombination, it said, will simplify its marketing strategy; align its capital structure to "increased convergence of wireless and wireline offerings;" and help investors understand its accounting.

The move also comes at a time of possibly increased buyout activity in the wireless sector, following Cingular's acquisition this month of AT&T Wireless ( AWE).

More from Opinion

Microsoft Pops on Strong Earnings and Guidance: 8 Key Takeaways

Microsoft Pops on Strong Earnings and Guidance: 8 Key Takeaways

Microsoft's Earnings Provide Fresh Proof That the LinkedIn Deal Is Paying Off

Microsoft's Earnings Provide Fresh Proof That the LinkedIn Deal Is Paying Off

Bitcoin Prices Are Back Up, but Traditional Investors Remain Skeptical

Bitcoin Prices Are Back Up, but Traditional Investors Remain Skeptical

EBay's Soft Guidance Doesn't Reflect Well on its Attempts to Fight Off Amazon

EBay's Soft Guidance Doesn't Reflect Well on its Attempts to Fight Off Amazon

4 Key Takeaways for Apple, Nvidia and Others From TSMC's Earnings Report

4 Key Takeaways for Apple, Nvidia and Others From TSMC's Earnings Report