Intel assures Clearwire on investment info - WSJ

23 October 2009 @ 12:14 pm EDT

Intel Corp assured Clearwire Corp it is closely guarding its investment information on the wireless-broadband company after an insider-trading scandal surfaced last week, the Wall Street Journal reported, citing Clearwire chief executive Bill Morrow.

A Clearwire broadband internet service package is seen in this undated handout photo. Clearwire Corp and Sprint Nextel Corp have made progress on terms for a roaming deal for their high-speed wireless networks based on WiMax technology, Clearwire's Chief Executive said on Wednesday.

1 of 1

"It's necessary to ensure that information is properly protected," Morrow told the paper in an interview.

Billionaire hedge fund founder Raj Rajaratnam and executives from some of the most prestigious U.S. companies were charged last week with the largest hedge fund insider-trading scheme ever.

One of the criminal complaints accuses Rajaratnam of conspiring with Intel Capital treasury department managing director Rajiv Goel.

Around March 2008, Rajaratnam's Galleon Group bought about 125,800 shares of Clearwire based on inside information about an investment Intel Capital was planning to make in the company, prosecutors have said.

Intel could not be immediately reached for comment by Reuters.

Clearwire had raised about $3.2 billion in capital from investors, including Comcast, Intel, Time Warner Cable Inc and Google Inc.

(Reporting by Ajay Kamalakaran in Bangalore; Editing by Hans Peters)