Sprint Declines to Buy Into Clearwire's Debt Offering as Deadline Passes By Greg Bensinger Bloomberg News
Jan 3, 2011 1:25 PM CT http://www.bloomberg.com/news/2011-01-03/sprint-declines-to-buy-into-clearwire-s-debt-offering-as-deadline-passes.html Sprint Nextel Corp., the third- largest U.S. mobile-phone carrier, said it chose not to buy debt from partner Clearwire Corp., which is trying to raise capital to avoid running out of cash. “The deadline passed and Sprint did not exercise its preemptive rights to participate,” Cristi Allen, a spokeswoman for Overland Park, Kansas-based Sprint, said in an e-mail. She declined to provide further details. Clearwire, whose network Sprint uses to offer its fourth- generation wireless service, said in November it would run out of cash this year if it couldn’t raise more and announced plans to cut its workforce and other expenses to save up to $400 million. Last month, Clearwire said it was selling at least $1.1 billion in debt, and Sprint had until Jan. 2 to participate in the offering. “Sprint’s decision was expected and despite short-term challenges, we continue to maintain a productive relationship with them and our other strategic investors,” Mike DiGioia, a spokesman for Clearwire, said in an e-mailed statement. He said Kirkland, Washington-based Clearwire has raised $1.4 billion through the debt offering. “We continue to pursue strategic options including equity investment and asset sales to fund further buildout,” DiGioia said. Sprint gained 20 cents, or 4.7 percent, to $4.43 at 2:21 p.m. in New York Stock Exchange composite trading. Clearwire added 5 cents to $5.20 on the Nasdaq Stock Market. -- ======================================== George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 Mail: antunes at uh dot edu _______________________________________________ Medianews mailing list [email protected] http://lists.etskywarn.net/mailman/listinfo/medianews
