Sprint completes acquisition of Clearwire (Update)

Sprint has completed its acquisition of wireless network operator Clearwire Corp.

Sprint Nextel Corp. paid $5 per share for the 51 percent of Clearwire it didn't already own. Bellevue, Washington-based Clearwire runs a mobile broadband network that Sprint uses to provide "4G" service on many of its phones.

Clearwire shareholders voted to sell to Sprint on Monday. Its stock will stop trading on the Nasdaq after the market closes on Tuesday.

Sprint hopes the deal will make it more competitive with rivals Verizon Wireless and AT&T Inc. It raised its original bid for Clearwire to overcome a competing bid from Dish Network Corp.

Meanwhile, Overland Park, Kansas-based Sprint has agreed sell 78 percent of itself to Japan's Softbank for $21.6 billion. On Monday, the companies announced that a majority of Sprint shareholders elected to receive cash for the stock they own, while 3 percent of shareholders chose to receive shares of Sprint Corp., the new company.

Those who didn't make a cash or stock selection were deemed to have chosen cash, which means the available cash consideration is oversubscribed. Therefore, shareholders who chose cash or made no election will now have the right to receive a combination of cash and shares of Sprint Corp.

The deal between Sprint and Softbank is expected to close Wednesday.

Sprint Nextel's stock added 4 cents to $7.11 in midday trading, while shares of Clearwire shed 1 cent to $4.99.

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