Clearwire, Sprint combine broadband units

Clearwire and Sprint Nextel of the United States are planning to merge their wireless broadband units to create a new US$14.55 billion wireless communications company. The firm, to be named Clearwire, will receive a US$3.2 billion investment from Intel Corp, Google, Comcast Corp, Time Warner Cable and Bright House Networks. The investment is based on a target price of US$20 per Clearwire share and will give the companies a 22 per cent stake in the new venture. Sprint will take a 51 per cent equity stake while existing Clearwire shareholders will receive about 27 per cent.