Nextel Communications' B/C tranche was seen trading in the 85 1/2 86 1/2 range last week. Traders said the name got a boost from news that Cingular Wireless was talking with VoiceStream about a possible merger. Last week's revival props up Nextel's levels from the low 80s, where the paper was trading as a result of pressure from the WorldCom scandal.
Industry consolidation would likely relieve pressure from market saturation and increased competition in the wireless sector. One dealer joked that any telecom-related name would feed off any news deemed to be positive. Calls to Nextel were not returned by press time.