Clearwire to Take $80 Million in Financing Under Sprint AccordCrayton Harrison
Clearwire Corp. is taking $80 million in financing from potential acquirer Sprint Nextel Corp. for a second straight month, even as it continues to weigh a competing offer from Dish Network Corp.
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.