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Sprint Nextel Corp and Clearwire Corp Agree to Increased Acquisition Offer


Thursday, 20 Jun 2013 02:35pm EDT 

Sprint Nextel Corp and Clearwire Corp announced that they have agreed to amend Sprint's agreement to acquire the approximately 50% of Clearwire it does not currently own (the minority stake) for $5.00 per share, valuing Clearwire at approximately $14 billion, or about $0.30 per MHZ-pop. This increased offer represents a 47% premium to Sprint`s previous offer of $3.40 per share announced on May 21, 2012 and a 285% premium to Clearwire's closing share price on Oct. 10, 2012. This offer also represents a 14% premium to the $4.40 per share DISH tender offer. In addition to the increased price per share, the companies have further amended the merger agreement that was previously entered into. Specifically, among other things, in certain circumstances where the transaction between Sprint and Clearwire terminates, Clearwire will be required to pay a termination fee of $115 million, or 3% of the equity value of the minority stake. In the event the transaction is not completed, Clearwire has agreed to hold its annual shareholder meeting as expeditiously as possible and if the transaction is not completed under certain circumstances, Clearwire has agreed to waive the current standstill provision in the Equityholders` Agreement between Sprint, Clearwire, and the company`s strategic investors. That standstill provision was originally set to expire on November 28, 2013. 

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-0.05 -0.88%
4:00pm EDT