The third largest carrier in the states felt compelled to raise its bid for Clearwire despite its ownership of more than half of the company. In addition, Sprint worked out a deal to provide Clearwire with up to $800 million in financing. In exchange, Sprint received convertible debt that could be swapped for more Clearwire stock at the below market price of $1.60 a share.
Saying that it was their best and final offer, Sprint's $3.40 offer for Clearwire now tops Dish Network's $3.20 a share. Ironically, Sprint decided to top the offer from Charles Ergen and company despite an earlier comment that called Dish's offer illusory. Clearwire's shares have consistently traded above Sprint's $2.97 offer and have stayed close to Dish's bid. By Tuesday afternoon, Clearwire added 16 cents to $3.42 indicating that stockholders expect Dish to come back with a higher bid. That might be difficult considering that the company is now rumored to be considering the purchase of LightSquared's spectrum for $2 billion.