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Whitworth is calling for big changes in Sprint Nextel

Discussion in 'Wireless News' started by jones, Apr 12, 2007.

  1. jones

    jones Silver Senior Member
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    Activist Investor Ralph Whitworth Takes $500 Million Sprint Stake, Pushes for Change -- WSJ

    Activist investor Ralph Whitworth's Relational Investors firm has quietly amassed a $500 million stake (1%) in Sprint Nextel Corp., Wall Street Journal reports citing unnamed sources. In meetings with management, Whitworth is calling for big changes, including capital spending pullbacks and a sale of Sprint's fiber-optic networking and long-distance units. Sprint shares have lost about 25% since its August 2005 merger with Nextel as the company continues to lose customers to rivals AT&T and Verizon -- whose shares have gained 60% and 9% respectively over the same period. Many investors say management has been too slow to implement post-merger changes. Sprint's promised WiMax network, scheduled to begin rolling out late this year, is supposed to double wireless broadband speeds, but Whitworth views WiMax as a overly speculative cash flow drain. The Journal says Sprint shares will likely jump on the news, but questions whether Whitworth can help boost the company's performance in the long-term.

    http://wireless.seekingalpha.com/article/32117
     
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  2. blsemp

    blsemp Senior Member
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    Did the fiber and the Long Distance service go with Sprint or Embarq at the time of the split?
     
  3. TelcomJunkie

    TelcomJunkie Bad Handoff Investigator
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    They retained the fiber optic network. Why you'd want to sell off the fiber optic network when you're about to deploy WiMax I don't know. It seems like I'd want to be in control of the bandwidth, not having to pay someone else.
     
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  4. clock3687

    clock3687 Cell Signal?????? Use it!
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    It looks like sprint kept the fiber network and the long distance service went over to embarq. Sprint offers fiber to businesses and they advertise that on their website. There is no sign of longdistance on the sprint website so im giuessing that network went to Embarq. Damn TJ beat me to it. :browani:
     
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  5. blsemp

    blsemp Senior Member
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    Sounds like Gary Forsee got to cherry pick the most valuable assets when he split the company up.

    :D :D
     

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