Clearwire agrees to new, higher Sprint offer
Sprint would pay $5 per share to buy out the rest of its wireless partner, beating Dish Network's most recent bid
IDG News Service - Sprint Nextel has offered and Clearwire has accepted a bid of $5 per share for the struggling wireless network provider, raising the stakes yet again in an expensive bidding war between Sprint and satellite service provider Dish Network.
The new offer boosts Sprint's willingness to pay by nearly 50 percent from its previous bid of $3.40 per share and beats Dish's latest offer of $4.40 per share. The bid values Clearwire at about $14 billion.
The fate of Clearwire is the key question remaining in a long-running battle between Sprint and Dish, a mobile upstart that this year has tried to buy both Clearwire and Sprint itself. Amid growing demand for mobile data capacity, Clearwire's massive spectrum holdings could be a decisive asset for any company that owned them. Sprint's plans call for an LTE network being built by Clearwire to complement Sprint's own LTE network in areas of high demand.
Earlier this month, Clearwire's board of directors had endorsed Dish's latest bid of $4.40 per share. But once again, Sprint has increased what it's willing to pay for the company. Its original bid for Clearwire last December was $2.90 per share. In a clear effort to demonstrate how much Clearwire shareholders have to gain from its latest offer, the companies said on Thursday that the new bid represents a 285 percent premium to Clearwire's closing price on Oct. 10 last year, just before reports about a possible SoftBank buyout of Sprint started to drive up Clearwire's shares.
On Monday, Sprint sued to block Dish's bid for Clearwire, saying the plan would violate commitments Clearwire had already made in a shareholder agreement.
Sprint plans to buy out Clearwire as part of a larger deal in which Japanese service provider SoftBank plans to pay $21.6 billion to take over Sprint. Dish had attempted to derail that deal, too, offering $25.5 billion for Sprint, but on Tuesday the satellite company said it was dropping that plan.
- Breaking BlackBerry: Your transition plan in 10 easy steps The move from BlackBerry should be a methodical approach that turns off the BES lights in a phased and methodical manner as you...
- Intelligent Imaging for Improved Banking Performance and Profitability A new generation of "Intelligent Imaging" solutions has emerged that is helping banks remove the burden of paper in legacy processes, like loan...
- Capabilities You Need in an IP Address Management Solution A mismanaged IP space can cripple an otherwise healthy network. Take a moment to understand what you need in an enterprise-ready IPAM solution.
- IPv6 Fundamentals IPv6 is needed to sustain the growth of the Internet. The transition from IPv4 will require planning and likely some degree of support...
- Maximizing Availability for the Modern Data Center Check out this information-packed resource center for help in maximizing the availability of your data center - from overcoming challenges to choosing the...
- Business-driven data protection Setting up data protection infrastructures with your organizations' core mission or business in mind is key. In this webinar, the ARCserve team will... All Wireless Carriers White Papers | Webcasts