For Sprint Nextel, Only Salvation Might Be a Buyout

Sprint Nextel's (S Quote) inability to hang on to customers means the teetering telecom giant might have no choice but to hope for a rescue from one of its fiercest rivals.

Given that it's among the top four national wireless carriers in the U.S, it could make strategic sense for a potential bid from Verizon (VZ Quote), AT&T (T Quote), and Deutsche Telekom's (DT Quote) T-Mobile unit. The question is which potential partner is best fit to carry Sprint on its shoulders.

Rumors of a buyout were swirling after CNBC contributor Jon Najarian said this week that Sprint had hired Morgan Stanley to explore all potential deals and takeovers. Sprint spokesman James Fisher said it was company policy not to comment on rumors or speculation, and Morgan Stanley also declined to comment. ...