Sprint Reaches Deal to Buy Rest of Clearwire

The third largest wireless carrier raised its bid slightly

   

Sprint Reaches Deal to Buy Rest of Clearwire

Sprint 4 199x300 Sprint Reaches Deal to Buy Rest of ClearwireSprint (NYSE:S) has struck a deal to acquire the remaining ownership interest in Clearwire (NASDAQ:CLWR).

Last week, Sprint issued an offer of $2.90 a share, which valued the 49% of the company it does not already own at $2.1 billion. However, some shareholders balked at the offer, saying it was too low.  After the nation’s third largest wireless carrier agreed to raise its bid for the company by 7 cents a share, Clearwire’s board unanimously voted to accept the offer, Reuters noted.

smartphone and globe Sprint Reaches Deal to Buy Rest of Clearwire
Dell Says No More Android Smartphones

Shares of Clearwire tumbled 12% in Monday morning trading, falling below $3 a share. In the wake of Sprint’s offer last week, Clearwire shares had soared to $3.27 a share on expectations of a higher final bid.

Sprint needs the backing of 24.8% of the company’s shareholders to complete the purchase. Minority shareholders Intel (NASDAQ:INTC) and Comcast (NASDAQ:CMCSA) have said they will support the new offer. The new deal values the rest of the company at $2.2 billion.

In October, Sprint announced that Japan’s Softbank (PINK:SFTBY) would purchase a 70% stake in the company. Sprint has struggled to compete with larger rivals AT&T (NYSE:T) and Verizon (NYSE:VZ).

Shares of Sprint rose more than 1% in pre-market trading on Monday morning.


Article printed from InvestorPlace Media, http://investorplace.com/2012/12/sprint-reaches-deal-to-buy-rest-of-clearwire/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.