Embarq mulls Sprint mobile deal alternatives

NEW YORK (Reuters) - Embarq Corp's (EQ.N: Quote, Profile, Research) newly appointed chief executive said on Monday that he planned to examine long-term alternatives to the telephone company's wireless partnership with former owner Sprint Nextel Corp (S.N: Quote, Profile, Research).

Tom Gerke was named CEO on Monday after holding the job on an interim basis since mid-December, when he took over from Dan Hesse, who left Embarq to head Sprint.

Embarq does not have its own wireless network but acts as a mobile virtual network operator, or MVNO, by renting space on Sprint's network to serve its own customers, in a relationship that limits profit margins for Embarq.

"We're taking certain steps to accomplish an orderly transition away from our current approach to the MVNO arrangement," Gerke told Reuters.

He also said that Embarq expected wireline losses to be roughly the same or slightly higher for the coming year.

Gerke said Embarq was interested in mergers and acquisitions in the long term, but it might be at a disadvantage in striking any deals right now. He said he was focused on improving operations in the meantime.

Embarq, which was spun off from Sprint, has seen its shares fall 21 percent in the last year amid wireline losses and concerns about a weakening U.S. economy.

The stock was up 10 cents at $42.04 in afternoon New York Stock Exchange trade.

(Reporting by Ritsuko Ando; Editing by Derek Caney and Lisa Von Ahn)