Sprint Phone-Directory Business Could Be Hot Item

Communications Today, March 5, 2002

Sprint's [FON] phone-directory business could attract a lot of attention on the open market, an analyst tells Communications Today.

"I think that [a directory business] is a kind of asset that intends to appeal to financial investors, so I do think that [Sprint's directory unit] will attract a fair amount of investors," Dan McBride, a senior analyst with Detroit- based H&R Block Financial Advisors, told Communications Today on Monday.

This past week, Sprint moved to address investor fear about liquidity by securing a $1 billion loan and said it is considering the sale of its phone- directory business. Analysts said the unit could bring as much as $2 billion in a deal. McBride said he expects telecom companies to pass on a proposed sale.

"My feeling is that other telephone companies are not that keen on expanding their business in that area," McBride said. "I think it is more likely that the bids might come from more of a financial investor." >TK