Sprint stock recombination draws lawsuits

? Sprint shareholders have filed at least six lawsuits over the decision to combine the company’s two tracking stocks into a single common stock, the telecommunication’s giant said Tuesday in a regulatory filing.

The suits were filed against Sprint and its directors by PCS common stockholders after the company made an announcement Feb. 29 that it would combine the separate stocks under the FON symbol on the New York Stock Exchange.

One suit was filed in the Supreme Court of the State of New York, which is that state’s trial court. The remaining five were filed in district court in Johnson County.

“The actions allege breach of fiduciary duty in connection with the approval of the recombination and seek injunctive relief or monetary damages,” Sprint said in the annual report filed with the U.S. Securities and Exchange Commission.

In 1998, the company created a tracking stock for its wireless business, Sprint PCS, which trades on the NYSE under the symbol PCS. Sprint, based in Overland Park, has just more than one billion PCS shares and about 906 million FON shares outstanding.

PCS common stock will be eliminated and each share of PCS common stock will be converted into one-half share of FON common stock on April 23, leaving about 1.4 billion total shares outstanding after the recombination. Sprint plans to continue paying the same quarterly dividend of 12.5 cents on all FON shares.

When the recombination was announced, Sprint said it was expected to reduce earnings between 2 and 3 cents per share and reduce the company’s free cash by $200 million in 2004 and $300 million in 2005.