Clearwire board said to favor offer from Dish Network; stockholder vote on Sprint bid delayed
It won't be smooth sailing ahead for Dish. Because Sprint already owned a majority stake in the company when the bidding for Clearwire started, it seeks to be a major minority stockholder in Clearwire. Sprint had kicked off the bidding for Clearwire back in December when it offered to buy the remaining shares it didn't own for $2.97. After Dish came in with a higher bid at $3.30 a share, Sprint followed by going a dime higher than Dish at $3.40 a share. Dish then came in with a blockbuster bid of $4.40 a share for Clearwire, $1 a share higher than what Sprint was willing to pay.
A delay in tomorrow's stockholder vote would be the third time the vote has been put off. Even though Sprint owns a majority of Clearwire's stock, it still needs to get a majority of the remaining votes in order to buy the company. Dish is seeking at least 25% of Clearwire, governance rights and seats on the company's board.
Dish has until June 18th to present Sprint's board with a fully financed final offer in the other takeover battle, the one for Sprint itself. Japan's SoftBank is offering $16.6 billion to the carrier's stockholders for 78% of the carrier and plans on giving Sprint $5 billion in additional capital which works out to $21.6 billion. Dish, on the other hand, is offering $25.5 billion for all of Sprint although that deal is not financed like SoftBank's offer is.
1. ZeroCide (Posts: 722; Member since: 09 Jan 2013)
Stockholders are in it for the $$$$ and will screw up decisions that are in the best interest of the company all the time.
2. lsutigers (Posts: 815; Member since: 08 Mar 2009)
Yeah but Sprint still has to vote / approve the buyout and since they are a majority shareholder, and they wont. They already outlined this in their last letter to Clearwire so not sure how far this is going.
3. Kelley71 (Posts: 54; Member since: 26 Nov 2012)
Dish can't win this, just delay it and harass Sprint. 50+% of the stock means Sprint can stop anything Dish wants to do dead in its tracks, indefinitely.
4. ojdidit84 (Posts: 437; Member since: 16 Jul 2011)
Yeah stockholders, get the $$ from Dish and then watch as stock plummets when Dish completely runs the company into the ground as if it isn't already doing poorly.
5. kg4icg (Posts: 70; Member since: 18 May 2008)
Here is some thing to think about. If sprint decided to pull out of Clearwire, and takes the frequencies that are still there's which happens to be a very good chunk. Dish's purchase of Clearwire would be totally useless.
6. bweaver731 (Posts: 4; Member since: 20 Dec 2012)
The real goal of Dish is to compromise the deal between Sprint and Clearwire to push Clearwire into bankruptcy. They can't obtain the financing they need because of an already debt laden financial sheet. They want to be a mobile player and since they can't buy sprint, they are going to attemp to delay the deal with Clear long enough that Clear loses financial solvency and needs to file for bankruptcy protection were the spectrum will be auctioned off and Sprint would have to bid to buy back spectrum they could potentially lose to AT&T or Verizon.