Softbank has set a cap on how much Sprint can offer Clearwire in its take-over bid, reports Reuters. Citing people familiar with the situation, Reuters says Softbank won’t let Sprint bid more than $2.97 per share for Clearwire. Sprint’s initial offer was $2.90 per share, with the deal valued at $2.1 billion.
This leaves Sprint little wiggle room with which to negotiate in its hoped-for takeover of Clearwire. Sprint already owns 51% of Clearwire and wants to purchase the remaining 49%. At the same time, Clearwire’s investors have indicated that Sprint’s $2.90 offer is far too low.
Speaking to Reuters, a handful of investors said a per-share price of $5 to $8 would be more acceptable, which is far above the cap set by Softbank. Softbank is in the process of acquiring a 70% stake in Sprint, a separate deal valued at $20.1 billion.
None of the companies involved commented on Reuters’ story.
