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.
No comments:
Post a Comment