In an effort to keep their majority stake in Clearwire (NASDAQ:CLWR), Sprint (NYSE:S) is expected to acquire about $200 million in Clearwire debt.
Kaufman noted, "Expecting Sprint (NYSE: S) to opt-in and purchase roughly $200 million of Clearwire debt...we expect Sprint to participate but reduce its economic interest to just above 50%, down from 54% before the debt offering...Total fund raising would exceed $2 billion with full Sprint participation."
Kaufman Bros. maintains a "Hold' on Clearwire, which closed Friday at $5.15, down $0.07, or 1.34 percent. They have a price target of $7 on Clearwire. Sprint closed Friday at $4.23, up $0.07, or 1.68 percent.
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