Sprint (NYSE: S) has reduced its voting stake in Clearwire (Nasdaq: CLWR) below 50 percent--even though it maintains majority ownership of the WiMAX wireless provider it helped form along with cable partners Comcast (Nasdaq: CMCSA), Time Warner Cable (NYSE: TWC) and Bright House Networks.
The move is designed to quiet investor concerns that Clearwire is a Sprint subsidiary and, as such, could be a major drag on Sprint if it failed. Sprint has continually backed the wireless venture with business and cash-unlike some of the cable players-and is Clearwire's largest customer.
Nevertheless, the wireless carrier felt it necessary to calm down investors as it goes looking for money for network upgrades.
For more:
- the Kansas City Star has this story
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