by Christopher Freeburn | December 17, 2012 9:32 am
Sprint (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.
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.
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