Breakup Fee Outlined for Sprint, Clearwire Deal
The pending total buyout of Clearwire by Sprint Nextel now has a deal termination fee attached to it, according to a Clearwire filing with the Securities and Exchange Commission.
If the merger agreement between the two companies is terminated, Sprint will be required to pay Clearwire a fee of $120 million. In addition, if the deal is terminated, Clearwire may also be entitled to a prepayment by Sprint of $100 million for LTE services on Jan. 15, 2014. That prepayment would be conditioned on certain site build-out completions already agreed upon by Clearwire and Sprint.
According to Clearwire's filing, the merger and merger agreement have been approved unanimously by both Clearwire's and Sprint's boards of directors.
The article Breakup Fee Outlined for Sprint, Clearwire Deal originally appeared on Fool.com.Fool contributor Dan Radovsky has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.