Reuters reports that Sprint Nextel Corp said it needs to raise more money and signaled it will burn through its cash reserves, raising concerns about the wireless provider's financial stability and business strategy.
Shares fell 20 percent to close at $2.41 on Friday, while its credit default swaps rose, reflecting greater concerns about a default risk. Shares of Sprint affiliate Clearwire Corp tumbled 32 percent to $1.39.
The news that Sprint could spend more cash than it brings in to upgrade its network provoked angry questions at an investor meeting with Chief Executive Dan Hesse.
Analysts complained that Hesse gave few clear answers and instead raised many fresh questions…
Find out more at http://www.reuters.com/article/2011/10/07/us-sprint-idUSTRE7963FZ20111007
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