Sprint Nextel Corp., which agreed to sell a 70 percent stake to SoftBank Corp. for $20.1 billion, has no immediate plans to take over Clearwire Corp., according to a Bloomberg News report based on interviews with people with direct knowledge of the situation.
SoftBank’s and Overland Park-based Sprint’s priority is to close the deal they announced Monday, which will take six to eight months, said the people, who asked not to be identified because the information is private. Until the deal is completed, the companies can’t engage in extraordinary activities such as further acquisitions unless SoftBank agrees.
SoftBank is prevented from doing further deals under its banks’ covenants during that time, while Sprint is prohibited from doing so under the merger contract, said one of the people. Clearwire shares fell as much as 20 percent Tuesday after doubling in the prior three trading days.