Sprint to Take Charge for Closing Web Unit
From Bloomberg News
Sprint Corp. said it would have pretax costs of as much as $475 million to close its Internet site management operation and eliminate 500 jobs.
The Overland, Kan.-based company will record $300 million of the costs, or 20 cents a share, at its local and long-distance unit this quarter to write down the value of the Web-hosting operation.
Sprint’s Chief Executive Gary Forsee is seeking to bolster sales and profit by eliminating a business that saps 10 cents a share from net income a year.
Shares of Sprint’s main unit, FON Group, rose 28 cents to $13.87 on the New York Stock Exchange.
