Sprint Nextel has raised its buyout offer for wireless service provider Clearwire to $3.40 a share, but the new bid was not high enough to impress some investors.

Clearwire shares almost immediately traded around the new offer price, having consistently traded well above the old $2.97-a-share bid. Sprint announced the revised price just hours before Clearwire was due to hold a shareholders meeting to vote on the original offer.

Analysts and investors had said the original deal was unlikely to be approved unless Sprint raised its bid substantially. Taran Asset Management principal Chris Gleason said he was still hoping for a price range of $5 to $7 a share.

Sprint is looking to gain control of Clearwire’s wireless airwaves to help it compete better against larger rivals. – (Reuters)