US wireless operator Sprint Nextel no longer has a majority stake in broadband firm Clearwire Corp, according to an SEC filing from Clearwire.
Sprint notified Clearwire to surrender 77.4m shares of class B common stock to reduce its voting rights in…
US wireless operator Sprint Nextel no longer has a majority stake in broadband firm Clearwire Corp, according to an SEC filing from Clearwire.
Sprint notified Clearwire to surrender 77.4m shares of class B common stock to reduce its voting rights in the broadband company to avoid any risk of any cross default triggers on its debt.
Following recent equity issuances from Clearwire, Sprint’s stake has declined below 50%.
Because of this Sprint has exercised its right to revoke the share surrender in exchange for paying a small sum to Clearwire, and the stock was reissued to Sprint in a private offering.
“Now that our economic interest has fallen below 50 percent, we are reclaiming our full voting rights so that our voting rights and economic rights are once again aligned,” a Sprint spokesman said.
Sprint is reclaiming the same number of shares, again at par value.
