Sprint Nextel Corporation (NYSE:S) is making plans for Clearwire Corporation (NASDAQ:CLWR)’s business take over according to the news.
Sprint Nextel Corporation (NYSE: S), the third-largest U.S. carrier, is now evaluating the strategic studies to buy out the business of wireless partner Clearwire Corporation (NASDAQ:CLWR).
As it is said that, Sprint Nextel Corporation (NYSE: S) is in a plan to buy out the minority shareholders of Clearwire Corporation (NASDAQ: CLWR). Sprint Nextel Corporation (NYSE: S), which already owned more than 50% of Clearwire Corporation (NASDAQ: CLWR)’s stock now desired to buy Eagle River Holdings LLC’s, a minority shareholder of Clearwire. Eagle River Holdings LLC’s is having 4.5% stake in Clearwire Corporation (NASDAQ: CLWR) at $2.97 a share in Oct.
The deal is projected to be announced at the end of the current year. Mr. Dan Hesse, the Chief Executive Officer of Sprint Nextel Corporation (NYSE: S) agreed that they are planning to buy out more investors in Clearwire Corporation (NASDAQ: CLWR). Sprint Nextel Corporation (NYSE: S) expect a cash influx from Softbank Corp. (Japan) (PINK: SFTBY), which intend to buy 70% of Sprint Nextel Corporation (NYSE: S) for about $20 million.
According to Hesse, they never miss a chance to take advantages in business opportunity. They always consider a deal at the right time with the right party if it falls in their interest. So anytime if there is an opportunity to take out a strategic investor, they will do. Hesse declared after the announcement of the deal with Softbank Corp. (Japan) (PINK: SFTBY) in Oct.
Scott Sloat, a spokesman for Kansas based Sprint Nextel Corporation (NYSE: S) as well Mike Digioia, a spokesman for the Washington-based Clearwire tight lipped on the matter.
Clearwire Corporation (NASDAQ: CLWR) shares went up to 15 percent to $2.77 after the talks. The stock was already up 24 percent this year as compared to last year through yesterday.
Clearwire Corporation (NASDAQ: CLWR) is up by 11.67% to close at $2.68.
Sprint Nextel Corporation (NYSE:S) is down by 1.59% to close at $5.57.
Softbank Corp. (Japan) (PINK: SFTBY) is down by 0.33% to close at $18.03.
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