Sprint Makes Move on Clearwire

Sprint Nextel (NYSE: S  ) has begun the process of taking control of its longtime networking partner Clearwire (Nasdaq: CLWR  ) .

The third-largest U.S. mobile carrier made a regulatory filing dated today indicating that it intends to buy enough shares from Eagle River Holdings to give it a 50.4% voting interest in the perennially struggling Clearwire. Sprint currently owns 48% of Clearwire's voting shares.

The impetus to seek control of Clearwire seems to be the agreement by Japanese mobile operator Softbank to buy 70% of Sprint for $20 billion. According to The Wall Street Journal,  people familiar with the matter have said the deal came with a caveat from Softbank's financiers that Sprint would have control of Clearwire and its cache of wireless spectrum licenses.

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  • Report this Comment On October 18, 2012, at 1:50 PM, spokanimal wrote:

    The big story today appears to be Craig McCaw's "make whole" arrangement that's tied to his sale of stock to sprint.

    I don't see anybody talking about it yet, but it appears to be a very important feature of this deal and is likely the reason that Sprint had little luck in compelling Intel or Comcast to relinquish their shares.

    Spokanimal

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