Sprint Connection

Sprint reportedly not planning to buy Clearwire after SoftBank deal

Updated: 2012-10-17T03:33:52Z

Bloomberg News

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.

Deal Saver Subscribe today!


The Kansas City Star is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Kansas City Star uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here