Friday, October 12, 2012

Clearwire Corporation(NASDAQ:CLWR) CFO cancels appearance at conference - Sprint Nextel Corporation(NYSE:S)

Clearwire Corporation(NASDAQ:CLWR), in which Sprint Nextel Corporation(NYSE:S) holds a 49 percent stake, cancelled an appearance by its finance head at a financial conference, with reports swirling that it expected to play a larger role in a deal involving Softbank and Sprint.

Clearwire shares jumped more than 4 percent on Friday, while Sprint shares were down 0.8 percent. Clearwire's shares have surged more than 70 percent on Thursday on rumours that the Japanese cell phone company's bid to acquire a controlling stake in Sprint centres on Clearwire.

No reason was given for the non-appearance of Hope Cochran at the conference which was organised by Deutsche bank.

Clearwire owns significant quantities of spectrum in the United States and is also planning launch its own next generation network using technology called TDD LTE, a similar network to that on which Softbank is engaged.

Bloomberg had earlier reported that Softbank would take up around 75 percent stake in the U.S. carrier while the Nikkei newspaper had said that the deal was valued at $19 billion.

The Wall Street Journal said that the Japanese company would multi-billion dollars into the company and end up roughly 70 percent stake.

Sprint will not only get enough money to fund its expansion but will also help it to reduce its huge debt burden, a legacy of its acquisition of Nextel, which was a failure.

However the negotiations with Softbank are still on and the deal has not yet reached conclusion.

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