UPDATE: McAdams Wright Ragen Downgrades Clearwire to Sell, Drops Coverage

McAdams Wright Ragen reduced its rating on Clearwire

from Hold to Sell and then dropped coverage on the stock. McAdams Wright Ragen commented, "Clearwire shares are rallying on Sprint's offer to acquire the remaining portion of Clearwire it does not already own. Under the proposed terms, Sprint will offer Clearwire shareholders $2.90 per outstanding share and will provide interim financing in the form of $800 million in exchangeable (for equity) notes. Clearwire has yet to accept the proposal. We are dropping coverage of Clearwire to focus on other ideas of interest. … Given our view of the situation, we think the risk/reward for Clearwire shareholders appears unfavorable and we recommend investors sell their shares in Clearwire." Clearwire Corporation closed at $3.16 on Thursday.