Sprint's CEO Steps Down

Associated Press

Sprint Nextel Corp., the nation's third-largest wireless provider, said Monday Gary Forsee, its chairman, president and chief executive, is stepping down, effective immediately.

The company also said it expects operating revenue for 2007 to come slightly below its prior targeted range. [Here's a link to the press release.]

Sprint said it decided to replace Forsee based on its board's belief that it is the "right time to put in place new leadership."

The announcement follows reports last week that the CEO was about to step down and that the company was already looking for a replacement.

The board has now formed a committee to search for a new CEO. Sprint said it will focus on candidates outside the company.

Sprint said board member James Hance Jr., a 63-year-old senior advisor to the Carlyle Group, will be the new acting non-executive chairman. Chief Financial Officer Paul Saleh, 50, will serve as acting CEO until a permanent replacement is named.

Sprint also warned it expects to report a net loss of approximately 337,000 post-paid subscribers in the third quarter and projects 2007 operating revenue will be slightly below its previously targeted range of $41 billion to $42 billion.

Sprint shares rose 5 cents to $18.55 in electronic after-hours trading. During regular trading, the shares fell 51 cents to close at $18.50.

By Dan Beyers  |  October 8, 2007; 5:07 PM ET  | Category:  Sprint
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