NextWave Revises IPO, Discloses MCI Stake

NextWave Telecom Inc. of San Diego revised the terms of its initial public offering and disclosed that MCI Telecommunications Corp., a unit of long-distance giant MCI Communications Corp., holds the equivalent of a 12% stake in the wireless communications company. That stake could help NextWave satisfy a condition that it reduce its level of foreign ownership to retain its rights to $5 billion in personal communications services licenses from the Federal Communications Commission. NextWave said it now plans to sell units through the IPO. Each unit will include a share of Series B common stock and a contingent transfer right, which will entitle the holder, under certain conditions, to receive additional Series B stock. The amount of stock issued under these rights would depend on the price of NextWave Series B shares in 2000.