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Thursday, December 13, 2012

Sprint offers $2.1 billion to purchase rest of Clearwire, (NYSE: S)

Sprint Nextel Corp, the majority owner of Clearwire Corp, has offered $2.1 billion to purchase the rest of the wireless service provider but it will likely have to offer more money in order to secure a deal.Clearwire, which said it is reviewing the offer, saw its share jump more than 10 percent in early trade to $3.04, topping Sprint's $2.90 offer price and suggesting that shareholders were hoping for a higher bid.The proposed price represents a 5 percent premium to Clearwire' closing stock price on Wednesday, but is 20 percent higher than the closing price on December 10, the day before news of a possible bid leaked.Analysts said it is very unlikely Clearwire shareholders would accept Sprint's offer.

Sprint Nextel Corporation (Sprint) is a holding company, with its operations primarily conducted by its subsidiaries. Shares of S fell by 0.71% or $-0.04/share to $5.62. In the past year, the shares have traded as low as $2.10 and as high as $6.04. On average, 66232900 shares of S exchange hands on a given day and today's volume is recorded at 18868894.