Sprint seeks new CEO to replace Forsee: report

By Sinead Carew

NEW YORK (Reuters) - Sprint Nextel Corp (S.N: Quote, Profile, Research, Stock Buzz) has begun searching for a replacement for Chief Executive Gary Forsee, the Wall Street Journal said on its Web site on Thursday, citing sources familiar with the matter.

The report comes amid growing expectations of a management change at the number-three U.S. wireless carrier, which has struggled over the past year with customer defections and technical problems.

Activist shareholder Ralph Whitworth earlier said he has lost faith in Forsee and threatened a proxy battle unless Sprint dealt with its leadership.

Sprint declined to comment. Its shares had risen as much as 4 percent earlier on Thursday, before closing up 2.8 percent.

The Journal said Sprint board members were dissatisfied with Forsee's performance and began "quietly" looking for a new leader in August.

The board hopes to announce by early December a new CEO who is likely to come from outside, the Journal said, adding that some "high-profile industry veterans" have been approached.

"It's hard to argue that he's done a good job," Stifel Nicolaus analyst Chris King said earlier on Thursday, referring to Forsee, who is also Sprint's chairman. "Rightly or wrongly the stock would react positively if a management change occurred."

Sprint's shares have lost more than a quarter of their value since April 2006 due to customer losses and difficulties integrating its 2005 Nextel Communications purchase.