US mobile operator Sprint Nextel has cut its voting interest in WiMAX wholesaler Clearwire from 54% to 49.8%, according to an SEC filing by Clearwire yesterday.
The action was taken by surrendering 77.4 million Class B shares in Clearwire. The move does…
US mobile operator Sprint Nextel has cut its voting interest in WiMAX wholesaler Clearwire from 54% to 49.8%, according to an SEC filing by Clearwire yesterday.
The action was taken by surrendering 77.4 million Class B shares in Clearwire. The move does not affect Sprint’s economic interest in Clearwire, which remains approximately 54%.
A Sprint spokesman said that Sprint was providing protection and flexibility to its debt agreements, as well as eliminating investor concerns about a cross-default risk.
He said: “This action only affects Sprint’s voting interest as a shareholder of Clearwire and does not affect Sprint’s other governance rights, nor does it reduce Sprint’s economic interest in Clearwire, which remains the same.”
He added that the two companies continued to have a “productive working relationship”.
The news comes as speculation continues to grow around the future of Clearwire and Sprint.
In May, Sprint’s CFO said it had yet to make a decision on the financing of struggling WiMax operator Clearwire.
CFO Joe Euteneuer said that his company was currently concentrating on its Network Vision programme, aimed at upgrading its network of base stations.
Euteneur also reportedly said that Clearwire had wasted money in its early operations and that the companies had been dealing with the wholesale prices dispute between Sprint and Clearwire, which lasted months and was only resolved recently.
Clearwire’s Q1 results were disappointing, showing a net loss of almost US$227m, although subscribers rose to 6.15m subscribers.
While it has enough cash for this year, Clearwire needs to find additional funds to roll out its WiMAX network.
