updated 01:16 pm EDT, Mon June 11, 2012
Sprint stake in Clearwire is reduced to just below 50 percent
Sprint no longer has a majority stake in Clearwire, it announced on Monday. This now means its voting rights in the venture are increased and there is no risk of defaulting on its own debt. Late last year, Sprint invested hundreds of millions into Clearwire to help it out of debt and to build out its 4G LTE network.
"Now that our economic interest has fallen below 50 percent, we are reclaiming our full voting rights so that our voting rights and economic rights are once again aligned," said Sprint spokesperson Scott Sloat.
The changes came after Clearwire recently issued equity, resulting it Sprint's stake in the 4G LTE broadband provider to fall to just under 50 percent. It's a way for Sprint to protect itself from owing money to suitors in case Clearwire goes to bankruptcy court.
Sprint is hoping to gain use of Clearwire's TD-LTE network this year.