Thursday, April 12, 2007

Whitworth's Relational Investors Now Targeting Sprint-Nextel (S)

According to reports from the Wall Street Journal, activist investor Relational Investors has built a stake of about $500 million, or nearly 1%, in Sprint-Nextel (NYSE: S).

The paper said Relational Investors' Ralph Whitworth has been calling for a number of changes at the company, including a pullback in its capital spending and a potential sale of its fiber-optic networking and long-distance operation.

On Tuesday, Relational Investors said they sold their remaining shares in Ceridian Corp. (NYSE: CEN), with Whitworth saying the firm has "bigger fish to fry."

Relational Investors was recently successful in its push to remove Home Depot (NYSE: HD) CEO Bob Nardelli and to split off the HD Supply business. Relational Investors was also provided a seat on Home Depot's board.

Past reports on Relational Investors

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