EXHIBIT 20.1
Nextel Communications, Inc.
1505 Farm Credit Drive
McLean, VA 22102
703-394-3000
[LOGO] Media:
Ben Banta (703) 394 - 3573
For Immediate Release Investors/Analysts:
Paul Blalock (703) 394 - 3500
NEXTEL TO REPURCHASE 25 MILLION SHARE OPTION FROM COMCAST
- -- Affiliates of Comcast and Nextel to Conclude $25 Million Option Repurchase --
McLEAN, VA. -- March 18, 1997 - Nextel Communications, Inc. (NASDAQ: NXTL), the
nation's leading provider of all-digital wireless services, today announced that
it had reached a definitive agreement with Comcast Corporation (NASDAQ: CMCSK),
to acquire a previously issued and outstanding option covering twenty-five
million Nextel shares. The terms of this repurchase transaction provide that an
affiliate of Nextel will acquire from an affiliate of Comcast the outstanding
option, which is exercisable for up to 25 million shares of Nextel common stock
at a per share exercise price of $16 on or prior to September 15, 1997, for a
cash purchase price of $25 million. In connection with this transaction,
Comcast's anti-dilutive right to purchase additional shares of Nextel stock and
its right to nominate Board members will be relinquished.
Steven Shindler, Nextel's chief financial officer, commented, "The market's
perception of the Comcast option seemed to have two competing strains - a
potential source of significant new equity funding and a significant potential
equity market overhang. We believe that repurchasing the option from Comcast at
a price comparable to current market valuations of publicly traded Nextel option
contracts is a prudent and strategically desirable course of action. This
transaction will remove the potential dilutive impact associated with any
exercise and resale into the market of option shares representing more than 10%
of Nextel's currently outstanding shares. At the same time, freeing these 25
million shares from this issuance commitment returns to Nextel the ability to
control their placement and gives us much more flexibility in exploring and
structuring potential transactions with others who may wish to acquire strategic
equity positions in Nextel."
Nextel Communications, based in McLean, Virginia, is the nation's largest
provider of all-digital wireless services. Nextel now offers enhanced digital
wireless service in more than 200 cities, making it the largest guaranteed
all-digital network providing commercial service in the U.S. today. To learn
more about Nextel and our services, visit our website at http://www.nextel.com.
Comcast Corporation is principally engaged in the development, management and
operation of wired telecommunications including cable television and telephone
services; wireless telecommunications including cellular, personal
communications services direct to home satellite television; and content through
principal ownership of QVC, the world's premier electronic retailer and through
majority ownership of Comcast-Spectator and other programming investments. The
Company's consolidated and affiliated operations serve over ten million
customers worldwide.
Comcast's Class A and Class A Special Common Stock are traded on The Nasdaq
Stock Market under the symbols CMCSA and CMCSK, respectively.
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