Sprint Nextel Corp.'s proposed purchase of wireless affiliate iPCS Inc. is gaining opposition from one of iPCS' largest shareholders.
Greywolf Capital Management LP says it owns about 8 percent of the Schaumburg, Ill.-based company. In a letter Monday to the company's board of directors, the investment fund said it will not vote in favor of Sprint's acquisition, saying the $24 per share price is too low.
Greywolf said that while it believes Sprint should buy iPCS, which sells Sprint-branded services through a swathe of the Midwest, the price should reflect the legal fights iPCS has waged with Sprint over numerous business deals it alleges violated exclusivity agreements between the companies.
Greywolf said the Overland Park, Kan.-based company should pay up to $47 per share.