Clearwire Tumbles on Plan to Raise $350 Million in Stock Sale
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Clearwire Corp., the money-losing wireless broadband provider, tumbled after saying it will raise $350 million in an equity offering to help cover costs and improve its mobile network.
The company will sell 175 million Class A shares at $2 apiece in an offering expected to close on Dec. 13, an increase from earlier plans to raise $300 million, Bellevue, Washington-based Clearwire said yesterday in a statement. Sprint Nextel Corp., which owns a majority of the economic interest in Clearwire, also will buy about 172 million shares of the company’s Class B shares in a separate transaction.