Navigate this market better. Subscribe for FREE stock alerts and information.

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 may have to raise its offer to get enough shareholder backing to secure a deal.Clearwire, which said it is reviewing the offer, saw its share jump almost 15 percent on Thursday, suggesting that shareholders hoped for a higher bid.Sprint offered $2.90 per share and said it would also provide interim financing of $800 million to cash-strapped Clearwire if shareholders agree to the $2.90 offer.Sprint, which already owns 50.45 percent of Clearwire, needs approval from holders of 24.8 percent of Clearwire shares before it could take control of the company.

Sprint Nextel Corporation (Sprint) is a holding company, with its operations primarily conducted by its subsidiaries. Shares of S fell by 0.35% or $-0.02/share to $5.64. 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 55704272.