Sprint (NYSE:S) Rejects Participation in Clearwire's (NASDAQ:CLWR) Debt Issuance

Sprint (NYSE:S) decided they won't participate in the debut issuance of Clearwire (NASDAQ:CLWR), which could dilute shares up to below to percent, assuming all the notes were substituted for shares in the company.

Kaufman lowered their price target on Clearwire saying, "we are lowering our price target to $6 from $7 reflecting a material increase in Treasury yields in the past few months and a DCF with a terminal 5% growth rate, 13% discount rate and a 10% discount to the private market value around the recent wholesale uncertainty."

Sprint was trading at $4.53, up $0.02, or 0.55 percent, as of 11:47 AM EST. Clearwire was at $5.15, down $0.14, or 2.65 percent.