NEW YORK -- The stock of Nextel Communications Inc. rose 12.8 percent Friday amid renewed speculation that MCI WorldCom Inc. might buy the company, as well as on positive comments from Goldman Sachs & Co., analysts said.
"It seems every Friday there's another rumor," said analyst Jeffrey Hines of BT Alex. Brown Inc. "What's moving the stock today are rumors that perhaps MCI WorldCom might buy Nextel."The McLean, Va., wireless-communications company has long been the subject of those rumors. MCI WorldCom doesn't have a wireless unit, analysts said, and Nextel's focus on business customers would fit with the long-distance giant's strategy.
Ben Banta, Nextel vice president, corporate communications, declined to comment on the speculation.
Aside from the MCI WorldCom rumors, analysts said Nextel's stock gained on positive comments from Wall Street investment firm Goldman Sachs.
On Friday, Goldman analyst Barry Kaplan set a near-term share-price target of $40, citing, among other factors, a strong domestic first quarter.
Shares of Nextel closed Friday at $37.87 1/2, up $4.31 1/4, and reached a new year high of $38.34 earlier in the day, surpassing the previous year high of $35 set a week ago.