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NEW YORK (
TheStreet) -- Shares of
Clearwire(CLWR) climbed in premarket trading Thursday after
Sprint(S) revealed its intention to buy out the wireless specialist.
filing with the
Securities and Exchange Commission, Sprint said that it plans to acquire Clearwire stock that it does not already own for $2.90 a share, a deal worth around $2.1 billion.
Clearwire shares gained 11.64% to reach $3.07 before market open. Sprint's stock dipped 0.35% to $5.64.
swirled for months that Sprint, Clearwire's largest shareholder, would acquire the 4G specialist.
The Overland Park, Kan.-based firm owns 51.7% of Clearwire, according to the SEC filing.
In October, Japanese firm
Softbank reached a
$20.1 billion deal to acquire a 70% stake in Sprint. The huge injection of capital is seen as bolstering Sprint's arsenal in the telecom battle against
Sprint has provided its Clearwire proposal to Softbank for review, according to the regulatory filing.
The consolidation trend in the telecom sector has been gathering pace. Last month,
U.S. Cellular(USM - Get Report) announced a
$480 million deal to sell its Chicago, St. Louis, central Illinois and three other Midwest markets to subsidiaries of Sprint.
rose earlier this week, lifted by
media reports that
Sprint(S) is in talks with Intel and
Comcast(CMCSA - Get Report) to buy out their stakes in Clearwire.
--Written by James Rogers in New York.
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