A bid by SK Telecom and Providence Equity to invest $5B in Sprint Nextel and install former Sprint chairman Tim Donahue as the company CEO has met with swift rejection from the Sprint board. The move comes as Sprint, which has seen its stock plumet 36% since June, searches for a new CEO, the Wall Street Journal reports.
With share prices falling, investors may be angry that the board dismissed the deal without so much as a meeting, according to analysts. Donahue, onetime CEO of Nextel, became chairman of Sprint when the two companies merged in 2005, and stepped down late last year. Sprint has performed poorly since the merger, and a deep rift between Nextel and Sprint employees lingers.