Sprint has confirmed an offer to buy the rest of Wimax operator Clearwire. In a SEC filing, Clearwire said its board agreed to enter talks with Sprint on a indicated bid of USD 2.90 per share, slightly higher than Clearwire's recent trading price.
Sprint has already been increasing its stake in Clearwire in the past year, by buying out other shareholders and converting loans to the company. In October, its stake rose over 50 percent. The two already cooperate closely on network sharing and development, and Clearwire's extensive spectrum holdings are expected to boost Sprint's LTE roll-out.
Sprint has agreed to provide up to USD 800 million in interim financing to Clearwire as part of the deal, in the form of exchangeable notes. The takeover will require the approval of Softbank, the Japanese carrier in the process of acquiring Sprint, and the Clearwire deal would likely not be completed until after the Softbank transaction. Clearwire's other key shareholders, which include Intel and Comcast, would also need to accept Sprint's offer.
