Who's Buying Clearwire Shares?
4:40 PM -- Have you noticed Clearwire LLC (Nasdaq: CLWR)'s rising stock price this last 48 hours?
The operator's share price is trading up $0.47 over the $2.90 price that Sprint Corp. (NYSE: S) has said it is offering to buy the rest of the company. (See Sprint Wants to Buy Clearwire Outright for $2.1B.)
As I write this, Clearwire is trading at $3.38 -- up 7 percent, or $0.22, for the day on Friday. Not bad for a stock that closed Wednesday at $2.75.
So why is Clearwire trading so high above the premium it has set for its buyout? There are three reasons I can think of:
- Buyers expect a rival bid from another interested party. I should note that Clearwire didn't rule this out in its response to Sprint's bid. (See Clearwire Response to Sprint Talks.)
- Buyers expect Sprint to up its bid. Clearwire shareholders are already complaining that the deal undervalues the company.
- The buyers are idiots.
Anyone got any thoughts on what's driving the rally?
— Dan Jones, Site Editor, Light Reading Mobile