Sprint boosts bid for Clearwire by 14%
22 May 2013 | Kavit Majithia
Sprint has boosted its bid for Clearwire by 14% ahead of a shareholder vote to decide on the deal.
The third largest operator in the US now plans to offer $3.40 per share for the 50% stake in Clearwire which it does not already own, increasing its offer from the previous bid of $2.97 per share.
As a result of Dish Network’s rivaling bid for Clearwire, at $3.30 per share, the company has been trading at a higher price than Sprint’s original offer.
Voting on the offer has now been rescheduled to next Thursday, and there are increasing suggestions the deal will be passed after Clearwire share rose in trading.
Sprint is looking to secure the acquisition as part of its bid to successfully compete for wireless spectrum across the US with the newly formed T-Mobile USA, MetroPCS entity and market leaders AT&T and Verizon.
Sprint, however, is also subject to a takeover bid from Japanese operator Softbank, and the deal could close in the coming months.
Softbank also faces a rivaling bid for Sprint from Dish Network, and it is thought Sprint’s own problems are causing a further delay to securing the Clearwire acquisition.