Sprint Nextel buys two affiliates

Sprint Nextel agreed to pay $287.5 million, including the assumption of an undisclosed amount of debt, for Gulf Coast Wireless, and $219 million, plus the assumption $208 million in debt, for IWO Holdings. Both are affiliates of Sprint, which recently completed its merger with Nextel Communications. As part of the agreement, Gulf Coast Wireless will end its litigation against Sprint once the deal closes. As a result of their merger, a number of Sprint's 11 affiliates have filed suit against the carrier, claiming the merger allows Sprint to violate non-compete agreements with the affiliates. Sprint Nextel is also trying to settle with Nextel's former affiliate Nextel Partners.

For more on Sprint Nextel's attempts to settle with their affiliates:
- read this story from AP