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.
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