Dish‘s unsolicited and non-binding offer values Clearwire at $3.30 a share totaling $5.15 billion for all of Clearwire. The per-share price tops a previous bid by Clearwire’s majority shareholder Sprint Nextel by around 11%, according to the Wall Street Journal. Clearwire told the Journal that its ability to enter negotiations with Dish is “significantly limited” by its agreement with Sprint and with its shareholders. The wireless carrier owns around 50% of Clearwire already and has made a bid to buy the stake it does not currently own for $2.97 a share, or $2.2B. The company said Dish Network’s bid “is only a preliminary indication of interest and is subject to numerous, material uncertainties and conditions. Clearwire said it received a letter from Sprint stating it had reviewed Dish’s offer and “believes that it is illusory, inferior to the Sprint transaction and not viable…”, according to Reuters and The New York Times. Both Dish and Sprint are vying for access to viable spectrum. Last month, Dish won a critical regulatory ruling, gaining the right to convert some satellite airwaves for cellphone service. Whatever the case, Wall Street seemed unmoved by the news: Dish shares dropped just a tick — down 1.3 percent to $35.50 in after-hours trading.
By THE DEADLINE TEAM | Tuesday January 8, 2013 @ 4:30pm PSTTags: Big Deals TV, Clearwire, Dish Network, Sprint Nextel
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This article was printed from http://www.deadline.com/2013/01/dish-network-makes-bid-for-clearwire-reports/