Sprint, Clearwire update: break-up fee established; Comcast, Intel to sell Clearwire stakes regardless

19 Dec 2012

Sprint Nextel has promised to pay Clearwire a USD120 million break-up fee if its USD2.2 billion purchase of approximately 50% of the wireless broadband specialist does not go ahead, Reuters reports. Concurrently, Clearwire has confirmed that it has agreed to a ‘no-shop’ provision, meaning it cannot seek rival bids, but can consider unsolicited offers.

In a related development, Bloomberg reports that minority Clearwire shareholders Comcast and Intel Corp have agreed to sell their respective stakes to Sprint for USD2.97 a share even if other investors reject the telco’s offer. Cableco Comcast and Intel, the world’s largest semiconductor maker, bought into Clearwire back in 2008, alongside Sprint.

Bloomberg adds, however, that shareholders such as Mount Kellett Capital Management and Crest Financial have publicly challenged Sprint’s takeover deal. Indeed, Crest increased its stake in Clearwire from 6.62% to 8.34% yesterday, noting in a regulatory filing that it ‘continues to oppose the proposed merger of Clearwire with Sprint’.