News by Andrew Kameka on Wednesday February 27, 2013.
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Clearwire plans to accept $80 million in new financing from Sprint, the majority shareholder in Clearwire that has also made attempts to acquire full ownership of the struggling wireless company. Clearwire today announced that it has elected to take the first of four draws under an agreement it made with Sprint for new exchangeable notes. Though the company is not under any obligation to take additional money from Sprint and could secure more financing in August, September, and October, the decision to take money now may leave Clearwire with few other options.
Following Sprint's bid to acquire Clearwire and offer additional financing while awaiting government approval of the deal, DISH presented a counter-offer to acquire the company. DISH's $3.30 per share offer bested Sprint's $2.97 per share proposal, but it was contingent on Clearwire not accepting any new financing from Sprint. Clearwire announced earlier this month that it declined to take the $80 million draw in order to keep its options open while it considered DISH's proposal, but the board ultimately chose to accept money from Sprint.
Clearwire decided not to wait on DISH because it's preliminary interest is "subject to numerous, material uncertainties and conditions." Clearwire previously said that it believes Sprint's bid for the company is the best option, but it continues to discuss the rival proposal from DISH.source: Clearwire
Andrew is MobileBurn.com's managing editor. He is based in Miami, Florida.