Sprint CEO Hesse Says Company Will Wait To Consider Mergers

Date : 05/16/2012 @ 1:23PM
Source : Dow Jones News
Stock : AT&T Inc. (T)
Quote : 39.63  -0.28 (-0.70%) @ 7:40PM

Sprint CEO Hesse Says Company Will Wait To Consider Mergers

Sprint Nextel (NYSE:S)
Historical Stock Chart

5 Years : From Apr 2012 to Apr 2017

Click Here for more Sprint Nextel Charts.

For Sprint Nextel Corp. (S), now isn't the time for a merger.

"Clearly, the time is not ideal based upon where our shares are currently trading," said Chief Executive Dan Hesse on a conference call with analysts on Wednesday.

Still, Hesse said he thought regulators would be willing to consider wireless industry mergers, despite blocking the $39 billion tie-up last year of AT&T Inc. (T) and T-Mobile USA.

In February, Sprint nearly approved a deal to buy pay-as-you-go rival MetroPCS Communications Inc., and last year it considered buying Deutsche Telekom AG's (DTE) T-Mobile, according to people familiar with those discussions. Like its competitors, Sprint is seeking access to more of the wireless airwaves, or spectrum, that fuel customer and revenue growth.

The Overland Park, Kan.-based carrier is focused on its ongoing $5 billion network upgrade project, Hesse said. Ideally, Sprint would concentrate on the project through next year, then "let's talk about consolidation in 2014 when we have this behind us," he said, noting that he hoped the carrier's stock price would improve relative to its competitors.

At the annual shareholder meeting on Tuesday, Sprint Chairman James Hance said Sprint's share price was a disappointment.

"Your frustrations are keenly felt," he said.

Sprint shares fell 45% last year, though they rebounded 5.5% in 2012 prior to Wednesday. Shares traded one cent lower, or 0.4%, at $2.46 early Wednesday afternoon.

Nonetheless, Hesse said he'd consider a takeover opportunity if the timing was right. "Sometimes something might happen where you might see synergies decrease substantially if you didn't move," he said.

-By Greg Bensinger, Dow Jones Newswires; 212-416-4676; greg.bensinger@dowjones.com




Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.


NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.