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