Sprint’s Hesse Fires ‘Nukes’ in 18-State Push to Stop AT&T

Dan Hesse’s White Room is closely guarded even within Sprint Nextel Corp. The chief executive officer carries the only key and draws black curtains over his scribblings before leaving. This is where Hesse retreats to map out “nukes” in red, blue and green ink, lately his tactics for stopping AT&T Inc.’s proposed takeover of T-Mobile USA.

“Clearly, purely, we want to win and block the merger,” said Hesse, during an interview at the company’s Overland Park, Kansas headquarters. “This one poses real risks.” Hesse has already thrown personal and corporate resources at blocking AT&T. He tripled the amount of time he’s spending on government affairs, testifying before Congress and making regular trips to Washington. Sprint is organizing industry opposition and filed a 377-page dissent with the Federal Communications Commission. The company even tapped its own engineers to show AT&T how to get more capacity from its wireless network so it wouldn't need to buy T-Mobile. Hesse is just getting started. He’s courting top technology CEOs to come out against the deal and sway public opinion. He’s working to get as many as 18 state regulators to scrutinize the purchase, which may slow down approval or prompt divestitures. He’s working on other tactics he’s not ready to disclose.