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.