Reuters is reporting that last week, Sprint Nextel spurned a $5 billion investment offer by Providence Equity Partners and South Korea’s SK Telecom.
Reuters said the offer was in the form of convertible-preferred stock securities that could be converted into equity for 20 percent more than Sprint’s current stock price. Tim Donahue, Sprint’s former chairman, was part of the investor group seeking to invest in Sprint, and The Wall Street Journal reported that the plan was to install Donahue as the new CEO if the offer was successful.
Earlier this month, Sprint suspended rolling out more of the Pivot wireless service that is part of the joint venture with Comcast, Cox Communications, Time Warner Cable and Bright House Networks.