US operator Sprint Nextel is at the centre of industry speculation linking it to two major moves. The first, more widely reported story, involves the possibility of Deutsche Telekom considering a takeover of the operator. Merrill Lynch analysts wrote in a report last week that Deutsche Telekom, owner of Sprint Nextel rival T-Mobile USA, could launch an acquisition attempt. Meanwhile, technology website Seeking Alpha has claimed Sprint has hired Morgan Stanley in a bid to spin off Nextel.

Last month Sprint Nextel wrote off most of the remaining value of its 2005 purchase of Nextel Communications when the company reported a fourth quarter loss of US$29.5 billion amid a continuing decline in customers. At the time Sprint Nextel said overall wireless revenues declined about 6% to US$8.5 billion, and reported a net loss of 108,000 subscribers for the quarter. New CEO Dan Hesse was hired in December to turn the nation’s third largest mobile operator around. Hesse already announced in January that the company would lay off about 4,000 employees, or 6.7% of its workforce, and close 125 retail locations. Earlier in January he moved the company’s corporate headquarters back to Kansas with the aim of improving efficiency and management oversight. The company’s shares have fallen more than 50% in the past year.