In a statement, Clearwire Corp, the wireless service provider, said that the proposed buyout by Sprint Nextel was the 'best option' for the minority stockholders of the firm.
Because of the statement, Clearwire shares fell by 6% as the initial reaction but recovered to retain just above the closing price of US$3.38 per share last Friday.
The statement said, "The Clearwire board has unanimously concluded that the proposed transaction with Sprint is the best strategic alternative for stockholders, especially in light of the company's limited alternatives and the well-known constraints of its liquidity position."
A group of four shareholders comprising 17% of the ownership said they would be working to seek a better deal for Clearwire. Last December, Sprint-Nextel, the majority owner, sought to purchase Clearwire for US$2.2 billion but Dish Network announced a counterbid for US$2.3 billion.
Clearwire announced last February that it would be evaluating the offer of Dish yet at the same time continue to recommend the bid made by Sprint.
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