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Tuesday, February 26, 2013

Clearwire may tap financing from Sprint Nextel - WSJ, (NYSE: S)

Clearwire Corp plans to tap financing from Sprint Nextel, in a move that further complicates Dish Network's effort to purchase Clearwire, the Wall Street Journal reported, citing people familiar with the situation. Dish made an offer of $3.30 per share for the wireless broadband operator, which had already agreed to sell itself to majority owner Sprint for $2.97 per share. A special committee on the Clearwire board is reviewing the Dish offer.Clearwire has the option to draw on $80 million of financing from Sprint on March 1, part of an arrangement that would gradually give Sprint a bigger stake in Clearwire.Clearwire has already foregone the opportunity to draw $160 million in January and February. Dish has said it would withdraw its offer if Clearwire took the financing.One of the people familiar with the situation told the Journal that Clearwire's draw of financing from Sprint Nextel was not intended to dissuade Dish from pursuing the company.

Sprint Nextel Corporation (Sprint) is a holding company, with its operations primarily conducted by its subsidiaries. Shares of S traded higher by 0.87% or $0.05/share to $5.78. In the past year, the shares have traded as low as $2.30 and as high as $6.04. On average, 38032600 shares of S exchange hands on a given day and today's volume is recorded at 21306772.