Dish Network Corp (DISH) Increases Offer For Clearwire
DISH Network Corp (NASDAQ:DISH) is increasing their offer for Clearwire today. They plan to raise their tender offer for shares in Clearwire to $4.40 per share in cash. Dish’s deal is better than the one from Clearwire’s majority owner, Sprint Nextel. Sprint is offering $3.40 per share and there is less than two days before shareholders are voting on their offer.
Dish reiterated why their offer is superior in a letter that was sent to Clearwire’s board of directors. Dish is taking advantage of shareholder dissatisfaction with Sprint’s revised deal. Shareholders have been criticizing Sprint’s deal as insufficient.
“The special committee of Clearwire’s board of directors has received Dish Network’s offer and will review it to determine the best course of action for the company and its stockholders. The special committee has not made any determination to change its recommendation of the current Sprint transaction,” said Clearwire in a statement today after receiving the new bid.
Dish Network’s offer comes at a time after they have not had substantive conversations with Clearwire in about a month. This is largely due to Dish Network’s $25.5 billion bid for Sprint themselves. Dish is competing with SoftBank on a bid for Sprint. Sprint currently owns over 50% of Clearwire. Dish has lined up $9 billion in financing for the Sprint bid so far and is conducting due diligence for Sprint right now.
“The Clearwire spectrum portfolio has always been a key component to implementing our wireless plans of delivering a superior product and service offering to customers,” said Dish Chairman Charlie Ergen in a statement.
Sprint’s shareholders are expected to vote on SoftBank’s bid on June 12th.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry