Order Barring Exec From Sprint Extended

BellSouth Corp. won extension of a court order preventing Vice Chairman Gary Forsee from becoming chief executive of rival telephone company Sprint Corp., with a judge ordering the dispute to be resolved in arbitration.

The restraining order against Forsee, obtained by BellSouth in a Georgia court Jan. 31, was extended 30 days by the judge, according to legal documents. Arbitration must be finished in that time and should focus on whether Forsee would harm BellSouth by bringing trade secrets to Sprint, the court said.

The decision continues management turmoil for Sprint, which wants Forsee to replace Chief Executive William Esrey because of Esrey’s use of tax shelters.

Shares of BellSouth fell 48 cents to $23.32 on the New York Stock Exchange. Shares of Sprint’s main unit, FON Group, rose 25 cents to $12.30 on the NYSE.