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January 03, 2011, 11:32 AM EST
By Greg Bensinger
Jan. 3 (Bloomberg) -- Sprint Nextel Corp., the third- largest U.S. mobile-phone carrier, said it didn’t buy debt from partner Clearwire Corp., which is trying to raise capital to avoid running out of cash.
“The deadline passed and Sprint did not exercise its preemptive rights to participate,” Cristi Allen, a spokeswoman for Overland Park, Kansas-based Sprint, said in an e-mail. She declined to provide further details.
Clearwire, whose network Sprint uses to offer its fourth- generation wireless service, said in November it would run out of cash this year if it couldn’t raise more and announced plans to cut its workforce and other expenses to save up to $400 million. Last month, Clearwire said it was selling at least $1.1 billion in debt, and Sprint had until Jan. 2 to participate in the offering.
Mike DiGioia, a spokesman for Clearwire, which is based in Kirkland, Washington, wasn’t immediately available before the start of regular business hours.
Sprint gained 20 cents, or 4.7 percent, to $4.43 at 11:26 a.m. in New York Stock Exchange composite trading. Clearwire added 12 cents, or 2.3 percent, to $5.27 on the Nasdaq Stock Market.
--Editors: Peter Elstrom, Ville Heiskanen
To contact the reporter on this story: Greg Bensinger in New York at gbensinger1@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
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Jan. 3 (Bloomberg) -- Sprint Nextel Corp., the third- largest U.S. mobile-phone carrier, said it didn’t buy debt from partner Clearwire Corp., which is trying to raise capital to avoid running out of cash.
“The deadline passed and Sprint did not exercise its preemptive rights to participate,” Cristi Allen, a spokeswoman for Overland Park, Kansas-based Sprint, said in an e-mail. She declined to provide further details.
Clearwire, whose network Sprint uses to offer its fourth- generation wireless service, said in November it would run out of cash this year if it couldn’t raise more and announced plans to cut its workforce and other expenses to save up to $400 million. Last month, Clearwire said it was selling at least $1.1 billion in debt, and Sprint had until Jan. 2 to participate in the offering.
Mike DiGioia, a spokesman for Clearwire, which is based in Kirkland, Washington, wasn’t immediately available before the start of regular business hours.
Sprint gained 20 cents, or 4.7 percent, to $4.43 at 11:26 a.m. in New York Stock Exchange composite trading. Clearwire added 12 cents, or 2.3 percent, to $5.27 on the Nasdaq Stock Market.
--Editors: Peter Elstrom, Ville Heiskanen
To contact the reporter on this story: Greg Bensinger in New York at gbensinger1@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
Online Business Consulting | Internet Business Consulting