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.