Clearwire Corporation (NASDAQ:CLWR) board gives nod to new offer from Sprint Nextel Corporation (NYSE:S)

The takeover bid from Sprint Nextel Corporation (NYSE:S) at per share price of $2.97 has been agreed by the board of the Clearwire Corporation (NASDAQ:CLWR). Sprint Nextel Corporation (NYSE:S), which is the wireless partner of Clearwire Corporation (NASDAQ:CLWR), is currently looking forward to obtain the segment of the company which is not owned by it as of now.

The approval for the latest offer was given by Softbank Corp (TYO: 9984) of Japan. It established in October, to purchase 70% share in Sprint Nextel Corporation (NYSE:S) for approximately $20 billion.

The 100 percent procurement of the company by Sprint Nextel Corporation (NYSE:S) will be effected after the four year joint undertaking which fought back to fabricate wireless network on a national scale, and loss of billions for Clearwire Corporation (NASDAQ:CLWR). The CEO of Sprint Nextel Corporation (NYSE:S), Dan Hesse, admitted the agreement to be critical.

The biggest test for Sprint Nextel Corporation (NYSE:S) will be to obtain agreement to the deal by the other investors of Clearwire Corporation (NASDAQ:CLWR). Crest Financial Ltd. And Mount Kellett Capital Management LP has combated the deal. At the same time, Sprint Nextel Corporation (NYSE:S) has the support of voting shares for 13 percent from Comcast Corporation (NASDAQ:CMCSA), Intel Corporation (NASDAQ:INTC) and Bright House Networks LCC.

An analyst in New Street Research of New York, Jonathan Chaplin said, “There is a significant block of Clearwire shareholders that will try to hold out for a higher price”.

CEO of Clearwire Corporation (NASDAQ:CLWR), Erik Prusch said, “The board was unanimously able to determine this was the best path forward,” In devoid of the deal, there may be restructure required for the company.

In the year 2008, while forming the Clearwire Corporation (NASDAQ:CLWR) project, Sprint Nextel Corporation (NYSE:S)   depended on investments from cable companies, Google Inc (NASDAQ:GOOG) and Intel Corporation (NASDAQ:INTC) for $3.2 billion. With losses creeping in, various partners sold off their risks for a value much lesser than its original value.

An analyst at Stifel Nicolaus & Co. in Baltimore, Chris King, said that the opponents are disturbing because they experience an “uphill battle” in jamming the transaction. He further said, “Given the strong minority opposition that will likely remain, final approval may come down to a vote-counting exercise,”

Shares of Clearwire Corporation (NASDAQ:CLWR) were down by 1.37% to close at $2.87.

Shares of Sprint Nextel Corporation (NYSE:S) were up by 0.54% to close at $5.53

Shares of Comcast Corporation (NASDAQ:CMCSA) were up by 1.37% to close at $38.05

Shares of Intel Corporation (NASDAQ:INTC) were up by 1.90% to close at $20.96

Shares of Google Inc (NASDAQ:GOOG) were up by 0.04% to close at $721.07

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Published by Benjamin Roussey

Benjamin Roussey is from Sacramento, California. He has two master’s degrees and served four years in the U.S. Navy. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship. His second master’s degree is an MBA in Global Management from the University of Phoenix (2006). He has worked for small businesses, public agencies, and large corporations. He has lived in Korea and Saudi Arabia where he was an ESL instructor. Benjamin spends his time in between Northern California and Cabo San Lucas, Mexico, committing himself to his craft of freelance and website writing.