Clearwire Corp announced it would draw on the debt money provided by Sprint Nextel Corp. Sprint is seeking to purchase Clearwire and the latter continues to entertain discussions with bidder Dish Network.
Clearwire share values fell by US$0.03 to US$3.17 after the announcement and this would signal the end of the efforts of Charlie Ergen, current Dish Chairman, to acquire it. The stock value was still above Sprint's offer for US$2.97 a ahare.
Analysts predict that Clearwire was forcing the hand of Dish to finalize its purchase proposal. This though was inconsistent with an earlier statement that it would refuse Sprint's offer while contemplating on whether or not to accept the US$3.30 share offer from Dish.
For its part, Dish declined to give any comment while Sprint said it was 'pleased' with the decision of Clearwire. With the deal, Sprint would be able to purchase the rest of the shareholdings in Clearwire, as it is already its majority shareholder. Many shareholders of Clearwire though were unhappy with the offer of Sprint, which requires majority approval from the minority shareholders.
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