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4:40 PM At $3.38 a share, Clearwire is trading way above the premium that the Sprint offer is supposed to establish

Who's Buying Clearwire Shares?

Dan Jones
12/14/2012
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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

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Jeff Baumgartner
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Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:09 AM
re: Who's Buying Clearwire Shares?


Clearwire was at about $1.54 when TW Cable revealed plans to sell its stake. Ooops.

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