The majority owner of Clearwire Corporation (NASDAQ:CLWR), Sprint Nextel Corporation (NYSE:S) has proposed $2.1B to purchase the rest of the wireless service provider other than it may have to increase its bid to obtain enough shareholder backing to secure a agreement.
Clearwire, which declared that it is evaluating the offer, saw its share surged about 15% on Thursday, signifying that shareholders expected for a higher offer.
Sprint proposed $2.90 a share and said it would also offer interim financing of $800 million to cash-strapped Clearwire if shareholders decided to the $2.90 offer.
Sprint already holds 50.45% of Clearwire, requires authorization from holders of 24.8% of Clearwire shares before it could take control of the firm.
Shares of Clearwire Corporation (NASDAQ:CLWR) traded at $3.37 by increasing +6.65% with price volatility of 8.79% for a week and 5.94% for a month plus price volatility’s Average True Range for 14 days was 0.17 and its beta stands at 1.04 times.
Stocks after opening at $3.08 hit high price of $3.40 and on last session stock held volume of 69.25 million shares which was unexpectedly higher than its average volume of 15.60 million shares.
Short-term as well long term investors always focus on the liquidity of the stocks so for that concern, liquidity measure in recent quarter results of the company was recorded 2.69 as current ratio and on the opponent side the debt to equity ratio was 4.40 and long-term debt to equity ratio also remained 4.37. The Company had total cash at hand $1.18 billion and a book value per share as $1.42 in the most recent quarter.
While investors who viewing CLWR against other stocks with the reference of profit margin that are Sprint Nextel Corporation (NYSE:S) having profit margin -12.28%, America Movil SAB de CV (ADR) (NYSE:AMX) with 11.39% profit margin, Vodafone Group Plc (ADR) (NASDAQ:VOD) having -3.42% profit margin and NII Holdings, Inc. (NASDAQ:NIHD) having profit margin of -2.72%.
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