Sprint set to pay $36bn for Nextel

Telephone company Sprint Corp is in advanced negotiations to buy Nextel Communications for more than $36 billion in a mostly stock deal that would create the No 3 US wireless telephone company, sources familiar with the situation said yesterday.

Under the terms being considered, Sprint aims to pay 1.3 shares of Sprint for each share of Nextel.

It also would pay a small amount of cash that would give Sprint a slightly larger ownership stake in the company for tax purposes, sources said.