The third-largest US wireless firm, Sprint Nextel Corp, Thursday scrapped its plans to seek a fresh injection of capital, cancelling its 3-billion-dollar offering of convertible preferred stock, the dpa reported.
After announcing the sale on Wednesday, Sprint stock slumped 14 per cent, but bounded back up 6.1 per cent on reports Thursday it had cancelled the offering, Bloomberg financial news service reported.
"The market conditions turned out not to be as advantageous as we had expected," Sprint spokesman James Fisher was quoted as saying. "We still expect to remain in compliance with our debt covenants and all of that. We are in solid financial shape."
On Wednesday, Sprint announced losses of 344 million dollars in the second quarter. Three years after its merger, the company is still struggling to integrate the separate operations.