Sprint to buy affiliate for $1.3 billion

WASHINGTON: Sprint Corp. said on Monday it had agreed to buy affiliate US Unwired Inc. for about $1.3 billion, ending a series of disputes between the two companies.

Sprint, which is buying Nextel Communications Inc., said it would buy all of US Unwired's outstanding common stock for $6.25 per share, and assume US Unwired's net debt, which stood at $233 million as of March 31. US Unwired's shares closed at $6.16 on Friday.

US Unwired resells Sprint's cellular phone services in nine states, with more than 500,000 customers. As part of the deal, US Unwired will halt its legal actions against Sprint, including a request for an injunction to stop the Sprint-Nextel deal.