Sprint Nextel (NYSE:S) may finally be ready to take the advice of activist investor Ralph Whitworth after a company webcast at a Bear Stearns conference in New York today hinted towards drastic changes in the future. Many investors are hoping that such changes could help turnaround the struggling telecom company.

Whitworth accumulated a $500 million stake in Sprint earlier this year through his hedge fund Relational Investors. Soon after he began pushing for the company to unlock value through a series of strategic transactions, including the sale of its long distance unit. Hints towards such transactions were given when CEO Gary Forsee noted its Embarq spin-off while saying, "It's something very important to continue to look at that structure ... if you look at our company as a sum-of-parts, we have to unlock value".

Buyout rumors have also surrounded the company ever since Alltel's successful auction earlier this year. There has been speculation since the telecoms' decline that the sector may be targeted for leveraged buyouts by private equity funds. Sprint's vast networks and market-leading position would make it an ideal candidate if properly priced. However, with Whitworth's talk of restructuring and the company's now-apparent support, the stock price may remain high enough to thwart any attempts in the near future.

All of this has some shareholders angered, however, as lackluster earnings have cut the stock's value by more than 20%. While some investors may understand the long-term value creation derived from a restructuring, many would likely opt for a quick sale if the opportunity presented itself. Regardless, Sprint is definitely a stock worth keeping an eye on while the company works to unlock value for shareholders.

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