Adele voted AP Entertainer of the Year


NEW YORK (AP) — Though Adele didn't have a new album or a worldwide tour in 2012, she's still rolling. After a year of Grammy glory and James Bond soundtracking, Adele has been voted The Associated Press Entertainer of the Year.


In 132 ballots submitted by members and subscribers of the AP, Adele easily outpaced other vote-getters like Taylor Swift, "Fifty Shades of Grey" author E.L. James, the South Korean viral video star PSY and the cast of "Twilight." Editors and broadcasters were asked to cast their ballot for the person who had the most influence on entertainment and culture in 2012.


Adele's year began in triumph at the Grammys, took a turn through recording the theme to the 007 film "Skyfall," and ended with the birth of her son in October. The ubiquitous Adele was that rare thing in pop culture: an unqualified sensation, a megastar in a universe of niche hits.


By the end of the year, her sophomore album, "21," had passed 10 million copies sold in the U.S., only the 21st album in the Nielsen SoundScan era (begun in 1991) to achieve diamond status. Buoyed by hits like "Someone Like You" and "Rolling in the Deep" long after its release in early 2011, "21" was also the top-selling album on iTunes for the second year running.


As David Panian, news editor for Michigan's Daily Telegram, put it: "It just seemed like you couldn't turn on the radio without hearing one of her songs."


Women have had a lock on the annual Entertainer of the Year selection. Previous winners include Lady Gaga, Taylor Swift, Betty White and Tina Fey. Stephen Colbert is the lone male winner in the six-year history of voting.


The Grammy Awards in February were essentially the de-facto crowning of the 24-year-old Adele, whose real name is Adele Adkins, as a pop queen. She won six awards, including album of the year. It was also a comeback of sorts for Adele, who performed for the first time since having vocal cord surgery, drawing a standing ovation from the Staples Center crowd.


Accepting the album of the year award, a teary Adele exclaimed: "Mum, girl did good!" The emotional, sniffling singer endeared many viewers to her when she copped in her acceptance speech to having "a bit of snot."


"This record is inspired by something that is really normal and everyone's been through it: just a rubbish relationship," said Adele.


But her luck in love has since turned, thanks to her boyfriend Simon Konecki. In an interview with Vogue magazine, Adele said she was through with break-up records and done being "a bitter witch." When Adele announced in June that she was having a baby with Konecki, her website promptly crashed under the heavy traffic. Their son was born in October.


With such an avalanche of success and now a mother of a newborn son, Adele has understandably taken a step out of the spotlight. One notable exception was recording the opening credits theme song to "Skyfall." The song was recorded with her "21" producer Paul Epworth at the Abbey Road Studios in London with a 77-piece orchestra. Within hours, it zoomed to the top of digital charts.


"There was an overwhelming embrace of Adele and her music," said Joe Butkiewicz, executive editor of the Times Leader in Wilkes-Barre, Pa. "And that was never more evident to me than when I heard teenagers express their enthusiastic expectations for the new James Bond movie because Adele performed the theme song."


The song recently received a Golden Globe nomination. No Bond theme has ever won the best original song Oscar, but given Adele's awards success thus far, it wouldn't be a stretch to think she has a chance of changing that. The tune is among the 75 short-listed songs in the Academy Awards category.


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Projects Editor Brooke Lansdale contributed to this report.


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U.S. to sell GM stake in 15 months









The Treasury plans to sell its remaining stake in General Motors over the next 15 months, allowing the automaker to shed the stigma of being partly owned by the U.S. government.

GM said Wednesday it will spend $5.5 billion to buy back 200 million shares of its stock from the Treasury by the end of this year. The government, in turn, plans to sell its remaining stake of 300 million shares on the open market over the next 12 to 15 months.

GM will pay $27.50 for each share, about an 8 percent premium over Tuesday's closing price of $25.49. The shares shot up more than 8 percent in premarket trading to $27.57.

The deal almost certainly means that the government will lose billions on a $49.5 billion bailout that saved GM from being auctioned off in pieces during the financial crisis in 2008 and 2009. GM's buyback will cut the Treasury's stake to 19 percent from 26.5 percent. For it to break even, Treasury would have to sell the remaining 300 million shares for average of about $70.

For GM, getting the government out of its business removes a major business obstacle. GM Chief Financial Officer Dan Ammann told reporters that GM has market research showing that government ownership has held down sales of the company's cars and trucks.

"This is fundamentally good for the business," he said at a hastily called news conference Wednesday morning.

The government got its stake as part of the bailout of GM that began nearly four years ago.

The Treasury Department said in a statement that it would sell the remaining 19 percent stake "in an orderly fashion" within the next 12 to 15 months, subject to market conditions.

Treasury said it will have recovered more than $28.7 billion of its investment through repayments of loans, sales of stock, dividends, interest and other income after GM buys back the 200 million shares. But that leaves Treasury about $21 billion short of recouping its investment.

In 2008 and 2009, the U.S. Treasury bailed out GM to help stabilize and restructure the company at the trough of the financial crisis. The bailouts of GM and Chrysler were part of the $700 billion Trouble Asset Relief Program created by Congress during the financial crisis in the fall of 2008.

"The auto industry rescue helped save more than a million jobs during a severe economic crisis," said Timothy Massad, Treasury's assistant secretary for financial stability. "The government should not be in the business of owning stakes in private companies for an indefinite period of time."

Massad said that exiting the GM investment "is consistent with our dual goals of winding down TARP as soon as practicable and protecting taxpayer interests."

Although GM is paying a premium for the government shares, Ammann said it's still a good deal for GM shareholders. The number of shares on the market will reduced about 11 percent, which should increase the value of the remaining shares.

The move was approved by the GM board on Tuesday evening after the company got opinions from its management and financial advisers, GM said.

Government-ordered pay restrictions will remain in effect. But a ban on corporate jet ownership and requirements on manufacturing a certain percentage of GM cars and trucks in the U.S. will be lifted. GM says it already has exceeded the manufacturing requirements and will continue to do so for the foreseeable future.

The company said it has no immediate plans to buy or lease corporate jets.

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Two bank robbers escape from federal prison in Loop

Chicago Tribune reporter Rosemary Regina Sobol has the latest details of two convicted bank robbers who escaped from the Metropolitan Correctional Center in downtown Chicago early this morning. (Posted on: Dec. 18, 2012.)









Two convicted bank robbers, including the Second-Hand Bandit found guilty just last week, escaped from the Metropolitan Correctional Center in the Loop this morning, police said.


Authorities discovered them missing from their cell at the federal jail at 71 W. Van Buren St. around  8:45 a.m., according to Central District Police Sgt. Michael Lazzaro. The inmates were last checked at 5 a.m., he said.


A rope could be seen dangling from about 15 stories up along the south side of the MCC, but police would not say whether it was involved in the escape. The rope appeared to be pieces tied together.








The two are believed to be traveling together and were reportedly last seen earlier this morning in the Tinley Park area, where one of the suspects lived, according to the FBI. It said they should be considered armed and dangerous.


At least one law enforcement helicopter could be seen in the area.


Police cars also raced to the Greyhound station and checked passengers against photos of the inmates, officials said. No arrests were reported.


The escapees were identified as Joseph "Jose" Banks and Ken Conley. Banks was described as black, 37, 5 feet 8 inches tall and weighing 160 pounds. Conley is 38, 6 feet and 185 pounds.


Banks, known as the Second-Hand Bandit, was convicted last week of two bank robberies and two attempted holdups. He made off with a nearly $600,000 in the heists, and authorities say $500,000 is still unaccounted for.


Banks was an aspiring clothing designer who claimed to be a "sovereign citizen" who could not be tried in a federal court. He acted as his own attorney and had to be restrained during his trial.


During closing arguments, Banks repeatedly interrupted Assistant U.S. Attorney Renato Mariotti, commenting on the evidence and suggesting photo lineups were rigged. Mariotti raised his voice over the interruptions to remind the jury of the evidence at trial, including $40,000 found in Banks' safe deposit box as well as a fake beard he wore in the robberies.


Security footage played for jurors showed Banks jumping bank counters and wielding a handgun as he ordered employees to open vaults and ATMs at the banks. In one video, a bank worker was shown hyperventilating on the floor of a cash room, clutching his chest and neck.


The other suspect was identified as Ken Conley, who pleaded guilty last October to robbing nearly $4,000 from a Homewood bank last year. He had lived in Tinley Park.


Conley robbed the MB Financial Bank branch at 2345 W. 184rd St. in Homewood on May 13, 2011. A floor host at a Chicago Heights strip club, he went back to work hours later to repay $500 he owed another club employee, authorities said. He was flashing a large amount of cash and was wearing the same black suit and white tie the bank robber wore, according to the criminal complaint.


Conley was caught by Chicago Heights police when he pointed a gun at someone while driving a gold Land Rover. Officers noticed he resembled the surveillance photos of the man who robbed the Homewood bank. Although the bank teller identified him and he was interviewed by authorities, he fled to California and was arrested there in September 2011.


A woman who answered at the home of a relative of Conley said it was "very upsetting for everyone" and declined further comment.


The last escape at the MCC was in 1985 when two convicted murderers enlarged a sixth-floor window and climbed down a 75-foot electrical cord attached to a floor buffer.


Bernard Welch and Hugh Colomb used a bar from exercise weights to knock out concrete and used hacksaw blades to cut metal away, enlarging a 3-inch window slit. The blade had been smuggled into the jail, authorities said.


Welch was serving a 143-year sentence for the 1980 murder of Dr. Michael Halberstam, a Washington, D.C. cardiologist and brother of Pulitzer Prize-winning author David Halberstam.


Colomb was convicted of killing an inmate and assaulting a guard in the federal penitentiary in Marion.


Both men were apprehended months later.


rsobol@tribune.com


Twitter: @RosemarySobol1





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Samsung drops attempt to ban Apple sales in Europe


STOCKHOLM (Reuters) - Korea's Samsung Electronics on Tuesday said it would drop law suits aimed at banning the sale of Apple Inc. products in Europe just a day after scoring a victory in a battle in the United States with the maker of iPhones.


Samsung and Apple, the world's top two smartphone makers, have been locked in patent disputes in at least 10 countries over the last 18 months since Apple sued Samsung, saying the Korean firm copied its best-selling iPhone and iPad.


On Tuesday, Samsung said it was dropping an attempt to stop the sale of some Apple products in Germany, Britain, France, Italy and the Netherlands, though it did not say it would halt its court battle for compensation.


"Samsung remains committed to licensing our technologies on fair, reasonable and non-discriminatory terms, and we strongly believe it is better when companies compete fairly in the marketplace, rather than in court," the company said in a statement.


A spokesman for Apple declined to comment on Samsung's decision.


The decision comes a day after a judge rejected Apple Inc's request for a ban on the sale of Samsung Electronics' smartphones in the United States.


In August, Apple was awarded $1.05 billion in damages after a U.S. jury found Samsung had copied critical features of the iPhone and iPad. The Samsung products run on the Android operating system, developed by Google.


In January, the European Commission opened an investigation into whether Samsung Electronics has distorted competition in the European mobile device market, breaking EU antitrust rules.


(Reporting by Simon Johnson, additional reporting by Paul Sandle; Editing by Louise Heavens)



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Florida man sentenced to 10 years in “hackerazzi” case






LOS ANGELES (Reuters) – A Florida man who pleaded guilty to hacking into the email accounts of celebrities to gain access to nude photos and private information was sentenced to 10 years in prison by a federal judge in Los Angeles on Monday.


Former office clerk Christopher Chaney, 36, said before the trial that he hacked into the accounts of film star Scarlett Johansson and other celebrities because he was addicted to spying on their personal lives.






Prosecutors said Chaney illegally gained access to email accounts of more than 50 people in the entertainment industry, including Johansson, actress Mila Kunis, and singers Christina Aguilera and Renee Olstead from November 2010 to October 2011.


Chaney, who was initially charged with 28 counts related to hacking, struck a plea deal with prosecutors in March to nine felony counts, including wiretapping and unauthorized access to protected computers.


“I don’t know what else to say except I’m sorry,” Chaney said during his sentencing. “This will never happen again.”


Chaney was ordered to pay $ 66,179 in restitution to victims.


Prosecutors recommended a 71-month prison for Chaney, who faced a maximum sentence of 60 years.


TEARFUL JOHANSSON


Prosecutors said Chaney leaked some of the private photos to two celebrity gossip websites and a hacker.


Johansson said the photos, which show her topless, were taken for her then-husband, actor Ryan Reynolds.


In a video statement shown in U.S. District Court in Los Angeles, a tearful Johansson said she was “truly humiliated and embarrassed” when the photos appeared online, asking Judge S. James Otero to come down hard on Chaney.


Prosecutors said Chaney also stalked two unnamed Florida women online, one since 1999 when she was 13 years old.


Chaney, a native of Jacksonville, Florida, was arrested in October 2011 after an 11-month FBI investigation dubbed “Operation Hackerazzi” and he continued hacking after investigators initially seized his personal computers.


Shortly after his arrest, Chaney told a Florida television station that his hacking of celebrity email accounts started as curiosity and later he became “addicted.”


“I was almost relieved months ago when they came in and took my computer … because I didn’t know how to stop,” he said.


(Reporting by Eric Kelsey; Editing by Jill Serjeant and Andrew Hay)


Celebrity News Headlines – Yahoo! News





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Experts: No link between Asperger's, violence


NEW YORK (AP) — While an official has said that the 20-year-old gunman in the Connecticut school shooting had Asperger's syndrome, experts say there is no connection between the disorder and violence.


Asperger's is a mild form of autism often characterized by social awkwardness.


"There really is no clear association between Asperger's and violent behavior," said psychologist Elizabeth Laugeson, an assistant clinical professor at the University of California, Los Angeles.


Little is known about Adam Lanza, identified by police as the shooter in the Friday massacre at a Newtown, Conn., elementary school. He fatally shot his mother before going to the school and killing 20 young children, six adults and himself, authorities said.


A law enforcement official, speaking on condition of anonymity because the person was not authorized to discuss the unfolding investigation, said Lanza had been diagnosed with Asperger's.


High school classmates and others have described him as bright but painfully shy, anxious and a loner. Those kinds of symptoms are consistent with Asperger's, said psychologist Eric Butter of Nationwide Children's Hospital in Columbus, Ohio, who treats autism, including Asperger's, but has no knowledge of Lanza's case.


Research suggests people with autism do have a higher rate of aggressive behavior — outbursts, shoving or pushing or angry shouting — than the general population, he said.


"But we are not talking about the kind of planned and intentional type of violence we have seen at Newtown," he said in an email.


"These types of tragedies have occurred at the hands of individuals with many different types of personalities and psychological profiles," he added.


Autism is a developmental disorder that can range from mild to severe. Asperger's generally is thought of as a mild form. Both autism and Asperger's can be characterized by poor social skills, repetitive behavior or interests and problems communicating. Unlike classic autism, Asperger's does not typically involve delays in mental development or speech.


Experts say those with autism and related disorders are sometimes diagnosed with other mental health problems, such as depression, anxiety, bipolar disorder or obsessive-compulsive disorder.


"I think it's far more likely that what happened may have more to do with some other kind of mental health condition like depression or anxiety rather than Asperger's," Laugeson said.


She said those with Asperger's tend to focus on rules and be very law-abiding.


"There's something more to this," she said. "We just don't know what that is yet."


After much debate, the term Asperger's is being dropped from the diagnostic manual used by the nation's psychiatrists. In changes approved earlier this month, Asperger's will be incorporated under the umbrella term "autism spectrum disorder" for all the ranges of autism.


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AP Writer Matt Apuzzo contributed to this report.


___


Online:


Asperger's information: http://1.usa.gov/3tGSp5


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NBC correspondent escapes Syria kidnapping


BEIRUT (AP) — NBC's chief foreign correspondent Richard Engel said he and his television crew were kidnapped for five days by pro-regime gunmen who subjected them to mock executions and kept them bound and blindfolded. They escaped during a firefight between their captors and rebels and reached Turkey on Tuesday.


However, it was not immediately clear whether all those abducted with Engel were accounted for.


Speaking to NBC's "Today" show one day after the escape, an unshaven Engel said the kidnappers executed at least one of his rebel escorts on the spot at the time he was captured. He also said he believes the kidnappers were a Shiite militia group loyal to the Syrian government, which is fighting a deadly civil war against rebels.


"They kept us blindfolded, bound," said 39-year-old Engel, who speaks and reads Arabic. "We weren't physically beaten or tortured. A lot of psychological torture, threats of being killed. They made us choose which one of us would be shot first and when we refused, there were mock shootings," he added.


"They were talking openly about their loyalty to the government," Engel said. He said the captors were trained by the Iranian Revolutionary Guard and allied with Hezbollah, the Lebanese Shiite militant group.


Both Iran and Hezbollah are close allies of the embattled Syrian regime, which has become a global pariah since it unleashed its forces in March 2011 to crush mostly peaceful protests against the regime. The bloody crackdown on protests led many in Syria to take up arms against the government, and the conflict has morphed into a civil war.


Engel said he was told the kidnappers wanted to exchange him and his crew for four Iranian and two Lebanese prisoners being held by the rebels.


"They captured us in order to carry out this exchange," he said.


Around 11 p.m. Monday, Engel said he and the others were being moved to another location in northern Idlib province.


"And as we were moving along the road, the kidnappers came across a rebel checkpoint, something they hadn't expected. We were in the back of what you would think of as a minivan," he said. "The kidnappers saw this checkpoint and started a gunfight with it. Two of the kidnappers were killed. We climbed out of the vehicle and the rebels took us. We spent the night with them."


Engel and his crew crossed back into neighboring Turkey earlier Tuesday.


NBC did not identify the others who were kidnapped along with Engel. The network said there was no claim of responsibility, no contact with the captors and no request for ransom during the time the crew was missing.


The Syrian government has barred most foreign media coverage of the civil war in Syria, which has killed more than 40,000 people since the uprising began in March 2011. Those journalists whom the regime has allowed in are tightly controlled in their movements by Information Ministry minders. Many foreign journalists sneak into Syria illegally with the help of smugglers.


Several journalists have been killed covering the conflict. Among them are award-winning French TV reporter Gilles Jacquier, photographer Remi Ochlik and Britain's Sunday Times correspondent Marie Colvin. Also, Anthony Shadid, a correspondent for The New York Times, died after an apparent asthma attack while on assignment in Syria.


Engel joined NBC in 2003 and was named chief foreign correspondent in April 2008. He previously worked as a freelance journalist for ABC News, including during the U.S. invasion of Iraq. He has lived in the Middle East since he graduated from Stanford University in 1996, according to his biography from NBC.


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McDonald's urging franchisees to open on Christmas









McDonald's Corp. is urging U.S. restaurant owners to take the unusual step of opening on Christmas Day to deliver the world's biggest hamburger chain with the gift of higher December sales, AdvertisingAge reported Monday.

The request -- which comes as McDonald's tangles with resurgent rivals such as Wendy's, Burger King and Yum Brands' Taco Bell chain -- would be a break from company tradition of closing on major holidays.

"Starting with Thanksgiving, ensure your restaurants are open throughout the holidays," Jim Johannesen, chief operations officer for McDonald's USA, wrote in a Nov. 8 memo to franchisees -- one of two obtained by AdvertisingAge.

"Our largest holiday opportunity as a system is Christmas Day. Last year, (company-operated) restaurants that opened on Christmas averaged $5,500 in sales," Johannesen said.

"The decision to open our restaurants on Christmas is in the hands of our owner/operators," McDonald's spokeswoman Heather Oldani told Reuters.

Don Thompson took over as chief executive at McDonald's in July and has the difficult task of growing sales from last year's strong results in a significantly more competitive environment.

McDonald's monthly global sales at established restaurants fell for the first time in nine years in October, but unexpectedly rebounded in November.

The November surprise was partly due to a 2.5 percent rise in sales at U.S. restaurants open at least 13 months.

"Our November results were driven, in part, by our Thanksgiving Day performance," Johannesen wrote in a Dec. 12 memo to franchisees.

Oldani said 1,200 more McDonald's restaurants were open on Thanksgiving this year versus last year -- not 6,000 more as AdvertisingAge reported.

Still, the company has a high hurdle when it comes to posting an increase in restaurant sales this month because its U.S. same-restaurant sales jumped 9.8 percent in December 2011.

"It's an act of desperation. The franchisees are not happy," said Richard Adams, a former McDonald's franchisee who now advises the chain's owner/operators.

The push to open on the holidays goes against McDonald's cultural history, said Adams. In his first published operations manual, McDonald's Corp. founder Ray Kroc said the company would close on Thanksgiving and Christmas to give employees time with their families, Adams said.

"We opened for breakfast on Thanksgiving the last couple years I was a franchisee. It was easy to get kids to work on Thanksgiving because they want to get away from their family, but not on Christmas," Adams said.



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Funerals today for first 2 Newtown school shooting victims












A grieving Connecticut town is bracing itself today to bury the first two of the 20 small victims of an elementary school gunman and debated when classes could resume — and where, given the carnage in the building and the children's associations with it.


The people of Newtown weren't yet ready to address the question just three days after the shooting at Sandy Hook Elementary School, and a day after President Barack Obama pledged to seek change in memory of the children and six adults ruthlessly slain by a gunman packing a high-powered rifle.











>> Photos: Newtown school shooting victims


"We're just now getting ready to talk to our son about who was killed," said Robert Licata, the father of a student who escaped harm during the shooting. "He's not even there yet."


Newtown officials couldn't say whether Sandy Hook Elementary, where authorities said all the victims were shot at least twice, would ever reopen. State police Lt. Paul Vance said Monday at a news conference that it could be months before police turn the school back over to the district.


Monday classes were canceled and Newtown's other schools were to reopen Tuesday. The district was making plans to send surviving Sandy Hook students to a former school building in a neighboring town, but they didn't say when that would happen.


The gunman, 20-year-old Adam Lanza, was carrying an arsenal of hundreds of rounds of especially deadly ammunition, authorities said Sunday — enough to kill just about every student in the school if given enough time, raising the chilling possibility that the bloodbath could have been even worse.


The shooter decided to kill himself when he heard police closing in about 10 minutes into Friday's attack, Gov. Dannel P. Malloy said on ABC's "This Week."


'These tragedies must end'


At the interfaith service in Newtown on Sunday evening, Obama said he would use "whatever power this office holds" to engage with law enforcement, mental health professionals, parents and educators in an effort to prevent more tragedies like Newtown.


"What choice do we have?" Obama said on a stark stage that held only a small table covered with a black cloth, candles and the presidential podium. "Are we really prepared to say that we're powerless in the face of such carnage, that the politics are too hard?"


The president first met privately with families of the victims and with the emergency personnel who responded to the shooting. Police and firefighters got hugs and standing ovations when they entered for the public vigil, as did Obama.


"We needed this," said the Rev. Matt Crebbin, senior minister of the Newtown Congregational Church. "We need to be together here in this room. ... We needed to be together to show that we are together and united."


As Obama read some of the names of victims early in his remarks, sobs resonated throughout the hall. He closed by slowly reading the first names of each of the 20 children.


"God has called them all home," he said. "For those of us who remain, let us find the strength to carry on and make our country worthy of their memory."


"We can't tolerate this anymore. These tragedies must end. And to end them, we must change," Obama said.


First funerals today


The first funerals were planned Monday for Jack Pinto, a 6-year-old New York Giants fan who might be buried in wide receiver Victor Cruz's jersey, and Noah Pozner, a boy of the same age who liked to figure out how things worked mechanically.


Funeral services for Pinto will take place at 1 p.m. at Honan Funeral Home, 58 Main St. in Newtown. Burial will follow at Newtown Village Cemetery, 22 Elm Drive, Newtown. The wake will be private. Funeral services for Pozner will take place at 1 p.m. from the Abraham L. Green and Son Funeral Home, 88 Beach Road, Fairfield, with burial following at B'nai Israel Cemetery on Moose Hill Road in Monroe.


"He was just a really lively, smart kid," said Noah's uncle Alexis Haller, of Woodinville, Wash. "He would have become a great man, I think. He would have grown up to be a great dad."





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Clearwire accepts slightly higher bid from Sprint


(Reuters) - Clearwire Corp agreed to sell roughly half of the company for $2.2 billion to majority shareholder Sprint Nextel Corp, which would then have full ownership of spectrum that will help it offer high-speed wireless services.


The $2.97-per-share deal is only 7 cents per share higher than a bid many minority shareholders said was too low days before. Clearwire shares tumbled 12.2 percent to $2.96 in morning trading on Monday.


Sprint already owns slightly more than half of Clearwire. The company said owners of 13 percent of Clearwire shares - Comcast Corp, Intel Corp and Bright House Networks LLC - had agreed to vote for the deal.


But it was not immediately clear whether Sprint, the No. 3 U.S. wireless carrier, could win the backing of a majority of Clearwire's minority shareholders, which it needs to take control.


"This is not going to be popular with the minority shareholders," said Davidson & Co analyst Donna Jaegers.


But Clearwire's top executive told analysts on a Monday call that the company had little alternative.


"Despite our efforts we have been unable to secure new partnerships," said Clearwire Chief Executive Officer Erik Prusch. "Our existing governance agreements prevented us from offering third parties the governance rights they desired in a partnership."


Shareholders with more than 13 percent of Clearwire shares said last week that they were not happy with the $2.90-per-share offer, and some have said Sprint should offer as much as $5 per share.


Crest Financial, which owns more than 3 percent of Clearwire, recently filed a lawsuit to stop the company from selling itself to Sprint.


After the deal was announced on Monday, Crest said it had amended the lawsuit to make it a class action.


Another shareholder, Mount Kellett, said last week that the $2.90-a-share deal "grossly" undervalued Clearwire.


Clearwire, which also counts Sprint as its biggest customer, has been seeking financing for a high-speed wireless network upgrade and to keep itself afloat.


While some analysts and shareholders said Clearwire did not need to rush into a sale to Sprint, others have said that move would be its best hope for survival.


Sprint, whose shares rose 1 percent to $5.61 on Monday, needs Clearwire's substantial spectrum to better arm itself against larger rivals Verizon Wireless and AT&T Inc.


Reuters reported last week that Japan's Softbank Corp, which recently struck a deal to buy 70 percent of Sprint, would not consent to a bid of more than $2.97 per share.


Softbank said on Monday that it supported the deal.


(Reporting by Sinead Carew in New York and Sayantani Ghosh in Bangalore; Editing by Rodney Joyce, Sriraj Kalluvila and Lisa Von Ahn)



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