Clearwire reportedly favours Sprint bid
04 February 2013 | Kavit Majithia
Clearwire has yet to close the door on a takeover from Dish Networks, but the company is reportedly more open to the bid from Sprint.
According to the Financial Times Clearwire’s special committee was assessing both Sprint’s bid of $2.97 per share, and Dish’s higher offer valued at $3.30.
The committee originally approved the Sprint deal, and has not changed that assessment, but claimed it would continue to hold discussions with Dish before taking its recommendations to the board.
A statement released indicated Clearwire’s chairman John Stanton had pushed for a higher offer from Sprint, to $3.15 per share but has so far been unsuccessful.
Softbank, which is in the process of a 70% takeover of Sprint, has reportedly imposed a cap of $2.97 per share for the proposed takeover.
Sprint has further offered Clearwire $800 million to fund its network roll-out, but Dish has said it would withdraw its counter bid if it takes up the offer.
Clearwire has remained quiet since Sprint’s initial offer came in last December.
Sprint said in its statement: “After a rigorous and extensive two-year process, Clearwire pursued numerous strategic opportunities, including discussing the sale of spectrum with no fewer than 10 parties and a series of ongoing conversations with Dish. Clearwire’s proxy makes very clear that Sprint’s definitive agreement to acquire Clearwire provides both the best value for shareholders and stability amid an uncertain future.”
Dish is yet to comment on the developing situation.