Reuters: Technology News: Clearwire, Sprint set $120 million breakup fee

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Clearwire, Sprint set $120 million breakup fee Dec 18th 2012, 14:33 Tweet Share this Email Print Related News Optimism about "cliff" boost market; financials lead Mon, Dec 17 2012 Clearwire investors unlikely to get higher Sprint bid Mon, Dec 17 2012 Exclusive: Softbank caps Sprint's Clearwire bid; investors want more Thu, Dec 13 2012 Sprint offers $2.1 billion to buy rest of Clearwire Thu, Dec 13 2012 Sprint in talks with major Clearwire investors: sources Tue, Dec 11 2012 Related Topics Investing Simplified » Tech » People talk on their cell phones as passers-by walk past a Sprint store in New York, October 15, 2012. Credit: Reuters/Keith Bedford Tue Dec 18, 2012 9:33am EST (Reuters) - Sprint Corp promised to pay Clearwire Corp a $120 million breakup fee if its $2.2 billion purchase of roughly half of the smaller wireless service provider does not go ahead. Sprint, the majority owner of Clearwire, announced the fee in a regulatory filing on Tuesday, the day after it said it would buy out the rest of the company for $2.97 per share. The Clearwire deal is conditional on the sale of a 70 percent stake in Sprint to Japan's SoftBank Corp for $20 billion, which is expected to close around mid-2013. It also requires approval from a majority of Clearwire's minority shareholders. Sprint would have to pay the breakup fee if the SoftBank deal does not happen, if it or Clearwire terminates the agreement, or if their deal has not been consummated on or before October 15, 2013, according to the filing. The merger agreement also includes a "no-shop" restriction on Clearwire's ability to solicit acquisition proposals. Sprint has support for the deal from at least three Clearwire shareholders owning 13 percent of the company - Intel Corp, Comcast Corp and Bright House. But some shareholders said they were disappointed by the price, and one started looking for support for a class action lawsuit against the deal. (Reporting by Sinead Carew; Editing by Lisa Von Ahn) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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