Forsee eyes merger 'finish line'

Sprint chairman and CEO Gary Forsee, in his company's second quarter eanrnings call Wednesday, said he still expects Sprint's pending merger with Nextel Communications to close during the current quarter, following necessary approvals from the U.S. Dept. of Justice and the Federal Communications Commission.

"We are in the home stretch and closing in on the finish line," Forsee said. "The DOJ and the FCC are the final hurdles before we reach the finish line."

Forsee pointed out the Sprint and Nextel have already announced their post-merger brand strategy, and that the deal had gained the approval of the shareholders of both companies. "There is also significant work underway on the necessary integration planning," he added.

In the earnings report, Sprint said it absorbed $27 million in costs related to the pending merger. But, Forsee said the company still anticipates roughly $12 billion in merger-related synergies.

Sprint still plans to spin off its local wireline services operation after the merger with Nextel closes. However, that spin-off could take a year or more, as Sprint has to file spin-off plans for regulatory approval in 14 of the 18 states where it currently operates locally. Approval for the spin-off could come in as quickly as six months in some states, but could take longer in others, company officials acknowledged.

"We will work very hard to narrow the timeline down," Forsee said.