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  • Clearwire (CLWR) Receives Increased Acquisition Offer From Sprint 0 comments
    May 21, 2013 3:18 PM | about stocks: CLWRR

    Clearwire announced today that it has received an increased offer from Sprint to acquire the approximately 50% stake in Clearwire that Sprint does not currently own. The offered price of $3.40 per share values Clearwire at $10.7 billion. Representing a 14% premium to Sprint's former offer of $2.97, which was announced on Dec. 17, 2012, the increased offer additionally represents a 162% premium to Clearwire's closing share price the day before Sprint-SoftBank discussions were initially confirmed in the marketplace on Oct. 11, 2012 - at which time Clearwire was also speculated to be part of that transaction. This increased offer represents Sprint's best and final offer.

    Demonstrating Sprint's commitment to closing the Clearwire transaction, the revised offer also shows Sprint's commitment to improving its competitive position in the U.S. wireless industry. The company is uniquely positioned to leverage Clearwire's 2.5 GHz spectrum assets, and Sprint's Network Vision architecture should allow for better strategic alignment and full utilization and integration of Clearwire's complementary 2.5 GHz spectrum assets - simultaneously achieving operational efficiencies and improved service for customers as the spectrum and network are migrated to 4G LTE standards.

    Having been submitted to the Clearwire board of directors, the revised offer is subject to that body's formal approval. The merger has been repeatedly declared to be the best strategic alternative for Clearwire and its minority stockholder by the company's special committee and board. Clearwire has additionally received commitments to vote their shares in support of the transaction from Comcast Corp., Intel Corp., and Bright House Networks LLC - all of which collectively own around 26% of the company's shares that are not affiliated with Sprint.

    Upon board approval of the transaction, which offers an attractive value for the shareholders of both companies, the transaction will be subject to customary closing conditions, including regulatory approvals and approval from Clearwire's stockholders. In order to acquire the remaining stake of Clearwire, SoftBank has consented to the increased offer.

    For more information, visit www.clearwire.com and www.sprint.com

    Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html

    Stocks: CLWRR
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