Shares of wireless telecom jumped sharply on Wednesday as Sprint Nextel Corporation(NYSE:S)’s CEO Dan Hesse said at a Goldman Sachs conference today that the industry is moving for a period of consolidation.
“I do think there will be consolidation,” he said. “I would hope and expect that over the long term Sprint will take a very active role in that.” As per Bloomberg, Hesse said Sprint may potentially do two types of deals. One would be a large-scale transaction to gain bulk to better compete with AT&T and Verizon. The other would be smaller and offer quicker cost benefits and synergies.
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Hesse has said he wouldn’t want to enter a deal that would be a distraction while the Overland Park, Kansas-based company builds a new network using long-term evolution, or LTE, technology. Sprint is trying to catch up with more extensive LTE networks offered by Verizon Communications Inc.(NYSE:VZ) and AT&T Inc.(NYSE:T).
Here are top gainers within the sector:
Sprint Nextel Corporation(NYSE:S) posted a gain of $7.13% to $5.56 and made multi month high of $5.71.
Clearwire Corporation(NASDAQ:CLWR) popped up over 13% to $1.56.
MetroPCS Communications Inc(NYSE:PCS) added 5.21% to $11.30.
Leap Wireless International, Inc.(NASDAQ:LEAP) rose 1.71%.