Piecyk criticized the board for a number of problems that have arisen in recent years. The board cleared a turnaround plan that failed to gain traction and cleared $30 billion worth of acquisitions that have been written off, he said. The analyst also chided directors for turning away a potential deal with Providence Equity Partners LLC that would have infused $5 billion into the company, only to draw down $2.5 billion of its credit facility months later. The report suggests that shareholders oust Irvine Hockaday, Linda Koch Lorimer, Gordon Bethune and Keith Bane.
"We believe that Hesse, Whitworth and one or two other board members (that we actually have faith in) will be able to bring in value-added fresh blood upon the departure of these weak board members," Piecyk wrote.
A spokesman for Sprint Nextel declined to comment. - Chris Nolter
See Dealwatch: Sprint Nextel
See additional stories about Forsee's ouster from The Deal Blogs Network
A day after Sprint Nextel Corp. issued a disappointing earnings report and projected that customer defections will continue, Pali Capital Inc. analyst Walter Piecyk in a Friday note called for investors to vote out four of the telecom's board members. New CEO Dan Hesse and investor Ralph Whitworth of Relational Investors LLC, named to Sprint's board earlier in February, need help, the analyst wrote.
