Nextel Partners sues Nextel Communications

Nextel Partners is suing its larger partner, Nextel Communications. Nextel Partners claims that Nextel Communications is violating a joint-venture agreement between the two companies by not letting Nextel Partners participate in the branding, marketing, pricing, and national-account discussions of the soon-to-be-merged carrier Sprint Nextel. Under their joint-venture agreement, Nextel Partners exclusively sells Nextel-branded products and services in rural and midsize markets for Nextel Communications. Sprint's deal to acquire Nextel Communications earlier this year triggered an option that allows Nextel Partners shareholders to sell the company to that new entity. A vote, however, cannot happen until Sprint and Nextel Communications officially merge.

Nextel Partners is suing Nextel Communications because the company fears that decisions made by Sprint and Nextel in the merger process may harm Nextel Partners' business. Nextel Partners says that it wants to make sure that such decisions do not harm the value of Nextel Partners during any post-merger negotiations.

For more on the Nextel Partners, Nextel Communicatons legal fight:
- go to this article from the Seattle Times