Shares of Clearwire (NASDAQ: CLWR) received a boost as details have emerged regarding a deal between Sprint and Softbank. Clearwire has jumped to the very top of the biggest advancers and most actively traded stocks on the NASDAQ as of October 12. A premiere mobile and fixed wireless broadband communications service provider, Clearwire is owned by a number of larger companies. The majority shareholder of Clearwire is Sprint Nextel, which owns 48.1% of the company. The share prices for Clearwire have jumped up by over 70.8% in view of the impending Sprint-Softbank deal.
Softbank is a Japanese mobile carrier that is currently negotiating a deal with Sprint Nextel that could in all likelihood exceed $12.8 billion in value. If the deal goes through, Sprint will receive billions of dollars that will be worked into its future plans while Softbank will end up with around 70% of the shares of Sprint Nextel in the form of newly issued shares as well as a tender offer that would allow Softbank to buy additional shares on the secondary market. These are the rough-leaked details of the proposed deal; official cognition is still to be revealed.
It is widely believed that one of the sticking points of the deal pertains to Sprint’s control of Clearwire, which it does not own. The system that Clearwire uses in the United States is in many ways similar to the one employed by Softbank in Japan. This could be a major selling point for Sprint Nextel as the Clearwire stake could help quicken Softbank’s transition into the United States.
Clearwire is a successful mid-cap company that is currently being traded on the NASDAQ. As of market closing on October 12, 2012, Clearwire shares were priced at $2.32 per share, $0.10 more than the previous close. Such an increase converts to a solid 4.5% boost for Clearwire share prices. In doing so, the share prices have overshot the one-year target, which was set at $1.875 per share.
While the 50-day average daily volume for Clearwire has been recorded at 10,341,020, the last share volume movement recorded for the company was at a whopping 170,351,844 owing to the Sprint Nextel and Softbank proposed deal.
Other mid-cap companies that have been doing sufficiently well are The Goodyear Tire & Rubber Company (NYSE: GT), which is the world’s largest tire company, and 3D Systems (NYSE: DDD), which is a leading provider of 3D printing solutions to consumers all over the world. Both companies are recipients of the POPULAR MECHANICS Breakthrough Award for 2012 for respective innovations and use of innovative technology. Both companies have also experienced a recent boost in share prices, but their gains do not compare to the jump experienced by Clearwire.
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