McCaw Family Invests in Nextel

Reston, VA-based Nextel Communication has disclosed that wireless industry pioneer Craig McCaw and his family have advised the company of their plans to exercise options covering an aggregate of 17 million shares of Nextel stock. Of those 17 million shares, the McCaw family will acquire 15 million shares directly from Nextel. The McCaw family will acquire the remaining two million options from Motorola.

The McCaw' originally agreed to invest up to $1.16 billion in Nextel in April of 1995. The options the McCaw family plan to exercise were granted by Nextel and Motorola in connection with the McCaw's original purchase agreement.

Craig McCaw plans to reduce his holdings by about 7 percent of his Nextel shares through an independent trustee. He will sell 15,000 shares on each of the next 200 trading days, regardless of the price.