Broadband infrastructure company Clearwire Corp. (NASDAQ: CLWR) is so pressed for money that it will apparently borrow funds from Sprint Nextel Corp. (NYSE: S), which has offered to buy it.
New Sprint controlling shareholder Softbank wants Sprint to expand its cellular broadband footprint as a way to better compete with larger rivals AT&T Inc. (NYSE: T) and Verizon Wireless. But there is competition for the purchase of Clearwire, and the Sprint loan could complicate the bidding process.
According to The Wall Street Journal:
Clearwire Corp. plans to tap financing made available by Sprint Nextel Corp., people familiar with the situation said Tuesday, in a move that further complicates Dish Network Corp.’s effort to buy the wireless broadband operator.
Dish has proposed buying Clearwire for $3.30 a share amid opposition among Clearwire shareholders to a deal in which Sprint would acquire the roughly half of Clearwire it doesn’t own for $2.97 a share.
Clearwire previously indicated that Dish has said it would withdraw its proposal if Clearwire drew on the funds made available by Sprint. The financing is in the form of notes that convert into stock — an arrangement that gradually could give Sprint a bigger stake in Clearwire.
Watch for the battle between Dish Network Corp. (NASDAQ: DISH) and Sprint to end up in court.
The Average American Has No Idea How Much Money You Can Make Today (Sponsor)
The last few years made people forget how much banks and CD’s can pay. Meanwhile, interest rates have spiked and many can afford to pay you much more, but most are keeping yields low and hoping you won’t notice.
But there is good news. To win qualified customers, some accounts are paying almost 10x the national average! That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 3.80% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account from Sofi. Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.