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Clearwire Shares Soar After Sprint Says It May Provide Financial Backing


Clearwire Corp. (CLWR), the unprofitable wholesale wireless carrier, soared as much as 29 percent after partner and main owner Sprint Nextel Corp. (S) said it may use proceeds from a note offering to help finance the company.

Clearwire gained 21 percent to $2.11 at 10:23 a.m. New York time, after rising as high as $2.25. Before today, the shares had lost 66 percent this year on concern that the company will run out of money.

Money from Sprint would allow Kirkland, Washington-based Clearwire to fund its operations and help pay for a planned network upgrade. Clearwire said this week that it has capital for 12 months and that its future may depend on Sprint, with which it is in talks for a new wholesale agreement. Sprint had previously signaled that it wouldn’t provide Clearwire with financial backing.

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