Sprint Investor Builds Stake, Calls For Changes

In what is becoming increasingly common in the US telco industry an investor is demanding changes in the way a company is being run. Relational Investors, the $6.7 billion investment firm of activist shareholder Ralph Whitworth, has reportedly built a stake of about $500 million in Sprint and is demanding changes to the way the company is run, according to the WSJ (that’s behind subscription, but Reuters writes about it). The changes Whitworth is asking for include a potential sale of its fibre-optic and long distance businesses, and a pullback in the company’s capital spending…which could have a negative impact on the planned WiMAX roll-out.
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