Relational Aims at Sprint: Report - TheStreet

Relational Aims at Sprint: Report

The Wall Street Journal says the activist investor takes a 1% stake.
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Sprint (S) - Get Report rose 2% after media reports indicated an activist investor is taking aim at the struggling telco.

The Wall Street Journal

reported Thursday that Relational Investors, the San Diego investor led by gadfly Ralph Whitworth, has taken a nearly 1% stake in the Reston, Va., company.

The news comes just a week after Sprint suffered an embarrassing setback when the government froze it out of a key communications services contract. Sprint has suffered several financial shortfalls over the past year and management has been shaken up repeatedly, leaving CEO Gary Forsee alone at the top of the company.

Relational has previously been involved in forcing management changes at

Sovereign Bank

(SOV)

and

Home Depot

(HD) - Get Report

.

Shares rose 42 cents to $19.60.