Sprint Offers to Buy Out Clearwire for $2.90 Per Share
The bid, at $2.90 a share for the 48.3 percent of Clearwire that Sprint Nextel does not already own, values Clearwire at around $4.2 billion.
The proposed offer price represents a 5 percent premium to Clearwire' closing stock price on Wednesday, but is 20 percent higher than the closing price on December 10, the day before news of a possible bid leaked.
The offer needs the approval of Japanese mobile company Softbank and is contingent on the planned sale of 70 percent of Sprint to Softbank, Sprint said in the regulatory filing.
The No. 3 U.S. mobile phone carrier had a 51.7 percent stake in Clearwire as of Dec. 11, up from the 50.8 percent on Oct. 13.
The offer, which Sprint said it would finance from working capital, is being evaluated by a special committee of Clearwire's board.