Sprint Nextel Corp. said it has tentatively set June 12 as the date for a shareholder vote on SoftBank Corp.’s takeover offer. The date is pending approval of the Securities and Exchange Commission’s approval of Sprint’s proxy filing, said Scott Sloat, a Sprint spokesman.
Meanwhile, Aurelius Capital, a big Clearwire shareholder, filed a lawsuit against Clearwire directors and Sprint over Sprint’s buyout plan for Clearwire, a Washington-based wireless company. Aurelius, which says it owns 17 million Clearwire shares, said Sprint, as Clearwire’s majority shareholder, had dictated “manifestly unfair” terms for its Clearwire deal, according to a court filing Friday. Clearwire and Sprint declined to comment.
Kansas City Life Insurance Co. on Friday reported a sharply lower first-quarter profit compared with a year earlier because of a decline in investment income. Net income of $5.2 million, or 47 cents a share, was down from $19.4 million, or $1.72 a share, in the first quarter of 2012. Revenue reached $108 million in the quarter ending March 31, down from $119.9 million in the same quarter last year.
In addition to a $15.4 million drop in investment income compared with last year, Kansas City Life said increased policyholder benefits contributed to the earnings change.
UPS averts strike
United Parcel Service and the Teamsters union have agreed to a new five-year contract covering 250,000 employees, erasing the risk that some business might be lost through the threat of a strike.
The accord includes “substantial” pay raises, higher wages for new part-time employees and the creation of 2,000 more full-time jobs from the ranks of part-timers, the union said.
The agreement will go to a ratification vote among rank-and-file drivers, package sorters and clerks before taking effect Aug. 1.
| Staff and wire reports