Sprint Nextel turns down SKT-led USD5 billion investment offer

30 Nov 2007

US wireless operator Sprint Nextel Corp has rejected a USD5 billion investment offer by South Korean operator SK Telecom and Providence Equity Partners, the Wall Street Journal reported yesterday. The paper says the Seoul-based company was looking to install former Sprint Nextel chairman Tim Donahue as Sprint’s new chief executive officer, replacing Gary Forsee who resigned on 8 October. It is understood Sprint rejected the offer without meeting with former chairman or the would-be investors, the newspaper said. In 2005, Gary Forsee masterminded Sprint’s USD35 billion acquisition of Nextel Communications, a move which has not panned out as originally intended. Sprint Nextel’s stock has plummeted more than 40% from its 2005 high.

United States, SK Telecom (SKT), Sprint Corporation (now part of T-Mobile US)