Faced with falling share prices for its PCS and FON tracking stoc...
Faced with falling share prices for its PCS and FON tracking stocks in recent weeks, Sprint might pursue asset sales to help near-term funding needs and clear its access to commercial paper market to borrow money, UBS Warburg said…
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Mon. In research note to investors, analysts said company could realize nearly $2.25 billion if it divested its publishing business and holdings in EarthLink. Researchers were bullish on Sprint’s overall ability to resolve its funding issues. UBS Warburg has estimated that Sprint has funding gap of $1.67 billion -- $200 million shortfall on wireline side and $1.47 billion on PCS wireless side. PCS shortfall doesn’t include $225 million of additional payments associated with NextWave spectrum re-auction that U.S. Appeals Court, D.C., overturned last year. Sale of assets to increase Sprint’s equity position is likely to be seen as positive move by credit ratings agencies, UBS Warburg said.