logo
  Join        Login             Stock Quote

Sprint (S) Agrees To Acquire Rest Of Clearwire (CLWR) For $2.97/Shr

 December 17, 2012 07:28 AM
 


(By Balachander) Sprint Nextel Corp. (NYSE: S) has agreed to acquire shares in Clearwire Corp. (NASDAQ: CLWR) it does not already own for $2.97 per share, or $2.2 billion, up 7 cents per share from its earlier proposal.

Sprint's deal represents a 12.0 discount to CLWR's previous closing price.

Clearwire shares tumbled 7.72 percent in pre-market trading on Monday, following the news.

The latest announcement confirmed market rumors that Sprint would buy all of Clearwire following its $20.1 billion deal with Japan's Softbank.

[Related -Intel Corporation (INTC) and 5 Other Stocks That Could Pop on Earnings This Week]

This transaction results in a total Clearwire enterprise value of roughly $10 billion, including net debt and spectrum lease obligations of $5.5 billion, the companies noted.

With the latest move, SprinSprint Nextel t has more control over Clearwire's spectrum assets, which is crucial for Sprint's high-speed wireless network.

"Sprint is uniquely positioned to maximize the value of Clearwire's spectrum and efficiently deploy it to increase Sprint's network capacity," commented Sprint CEO Dan Hesse. 

Sprint, the third largest wireless carrier in the U.S., agreed on Monday to acquire roughly 50 percent of Clearwire it does not currently own.

Last week, Sprint offered to acquire shares in Clearwire it does not already own for $2.90 per share.

[Related -Intel Corporation (INTC) Q4 Earnings Preview: Room To Pop On EPS]

As of Dec. 13, Sprint owned a 51.7 percent stake in Clearwire.

Meanwhile, Clearwire said it has received commitments from Comcast Corp. (CMCSA), Intel Corp. (INTC) and Bright House Networks LLC, who collectively own roughly 13 percent of Clearwire's voting shares, to vote their shares supporting the deal.

In October, Sprint's board approved a deal under which Softbank will acquire roughly 70 percent of Sprint in the largest Japan outbound deal on record. In the same period, Sprint boosted its stake in Clearwire to 50.8 percent, buying 30.9 million of Clearwire's Class A shares and 2.73 million of its Class B shares from telecom investor Craig McCaw's investment vehicle Eagle River Holdings LLC.

Clearwire's 4G network spans the nation and covers over 130 million people in around 80 U.S. markets. Clearwire has publicly stated that it has 60 MHz of spectrum beyond its operating needs in the top 100 Metropolitan Statistical Areas (MSAs). Clearwire owns or leases spectrum covering about 46.6 billion MHz-POPs nationwide.

The deals are expected to close mid-2013.

Sprint shares ended at $5.55 on Friday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageXerox Corp. (XRX): An Insider’s $500,000 Insider Buy

Last week was a healthy week of insider buying as 194 companies reported purchase records. The number read on...

article imageQihoo 360 Technology Co Ltd. (QIHU) Q2 Earnings Preview: A Green Monday

Qihoo 360 Technology Co Ltd. (NYSE:QIHU) will report its second quarter 2014 financial results on Monday, read on...

article imageSix Stocks that Could Outperform in the next 90 days

Earlier today, Goldman Sachs put out its list of the 50 stocks that Matter Most. It’s a list of the 50 read on...

article imageFoot Locker, Inc. (FL) Q2 Earnings Preview: Running Past the Street View

Foot Locker, Inc. (NYSE:FL) plans to report financial results for its second quarter ended August 2, 2014 read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.