Telecom & Wireless

Sprint Makes Clearwire an Offer It Can’t Refuse

Cell Tower detail
Source: Thinkstock
In a filing today with the SEC, Sprint Nextel Corp. (NYSE: S) announced that it is making an offer to buy the 740 million shares (49%) of Clearwire Corp. (NASDAQ: CLWR) it does not already own for a cash price of $2.90 a share. That is a 5.5% premium to Clearwire’s closing price last night. The total value of the deal is approximately $2.15 billion.

Sprint, already the object of a $20 billion takeover, must get approval from its prospective new owner — Japan’s Softbank — before entering into a definitive agreement to acquire the rest of Clearwire.

The only conceivable reason for this acquisition is that Softbank and Sprint had an understanding at the time of Softbank’s offer for Sprint that the U.S. phone company would either fish or cut bait with Clearwire. In the end, the temptation of Clearwire’s spectrum holdings proved just too enticing.

Sprint’s shares are trading down about 1.2% in the premarket this morning, at $5.66 in a 52-week range of $2.10 to $6.04. Clearwire’s shares are up 10.9% to $3.05, a new 52-week high if it holds.

Paul Ausick

Sponsored: Tips for Investing

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.