Sprint Nextel Corp. announced the hiring of Dan Hesse, CEO of former Sprint wireline business Embarq Corp. No word on whether the hiring of basically what amounts to an insider will placate activist investors who pushed out former CEO Gary Forsee.
Hesse left Sprint last year when the company spun off its wireline unit. Although he ran a wireline business, Hesse is familiar with the wireless business having run AT&T Wireless from 1997 to 2000.
Sprint Nextel chief Forsee left the company in October. After Forsee left, Former Nextel chief Tim Donahue attempted to secure the vacant CEO suite by teaming with SK Telecom and Providence Equity Partners, offering to invest $5 billion in the troubled telecom, which ultimately balked at the offer.
Forsee's departure was the result of an activist campaign led by corporate governance guru Ralph Whitworth, who's Relational Investors only owned a 1% stake in the wireless carrier. Whitworth has not commented on the hiring of Hesse. — Matthew Wurtzel
