Clearwire to Take $80 Million in Financing Under Sprint Accord

Clearwire Corp. (CLWR) is taking $80 million in financing from potential acquirer Sprint Nextel Corp. (S) for a second straight month, even as it continues to weigh a competing offer from Dish Network Corp. (DISH)

The financing, part of a prearranged agreement with Sprint, can be exchanged for Clearwire stock at $1.50 a share under certain conditions, the Bellevue, Washington-based wireless Internet provider said today in a statement. The company said it also remains in talks with Sprint about its $2.97-a-share offer to acquire full control of Clearwire.

The move helps Sprint tighten its grip on Clearwire, which has struggled to profit from its Internet service. Sprint, the third-biggest U.S. mobile-phone company, already owns slightly more than 50 percent of Clearwire, making it difficult for Dish to gain control even with its higher $3.30-a-share offer.

Clearwire was little changed yesterday in New York at $3.25. That price, a 12 percent increase for the year, shows investors expect the company to sell for a higher price than Sprint’s offer.

To contact the reporter on this story: Crayton Harrison in New York at tharrison5@bloomberg.net

To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.