Home » Technology » Clearwire Corporation (NASDAQ:CLWR) accepts financing from Sprint Nextel Corporation (NYSE:S)

Clearwire Corporation(NASDAQ:CLWR), which is being pursued by both Sprint Nextel Corporation(NYSE:S) and Dish Network, has made its choice clear.

The company has decided to accept financing worth $80 million from Sprint next month, a decision which have a great bearing on the buyout offer from Dish.

Sprint, which already owns about 40 percent in Clearwire, hopes to buy out the remaining stake in it and get access to valuable radio spectrum. It has offered to buy the stake at $2.97 a share.

The financing being offered is part of a larger funding arrangement worth $800 million over a period of 10 months. The financing is in the form of exchangeable notes, which Sprint can convert into Clearwire stock at $1.50 each, contingent on certain conditions being met.

So far Clearwire has accepted only one month of payment, though it has already lost the right to withdraw the instalments for January and February.

Dish has also made its offer for Clearwire shares at $3.30 each, and the latter is supposed to be considering the offer. In fact Clearwire’s minority shareholders are in favour of the offer from Dish and have been lobbying for it.

However by taking the financing from Sprint, Clearwire may by signalling that it is moving closer to closing that deal.

In any case even if Dish does become the successful bidder it would have to get the consent of Sprint, which is the majority shareholder.

 



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