Dish Networks bid for Clearwire tops Sprint's offer

Dish Networks bid for Clearwire tops Sprint's offer
Dish Network lobbed a grenade into Sprint's plan to buy the half of Clearwire that it doesn't already own. The satellite content provider is offering $3.30 a share for Clearwire's stock which is a healthy 11% premium over the $2.97 Sprint is set to pay. The Special Committee of the Clearwire Board of Directors has determined that it has the responsibility to look into Dish's offer even though it has already recommended the Sprint deal to the Board of Directors.

The deal offered by Dish includes the latter buying 11.4 billion MHz-POPs from Clearwire for $2.2 billion and Dish would have the option of leasing an addition 2 million MHz of spectrum at a price to be determined. Clearwire would help construct, maintain and manage AWS-4 spectrum and new deployments of 2.5 GHz spectrum for Dish.

The $3.30 per share tender offer for Clearwire's shares would be conditional and requires at least 25% of Clearwire stock to be tendered. Clearwire's stock, which closed Tuesday at $2.92, is up 9.5% in after-hours trading to $3.19 a share. The offer is technically an "indication of interest" as there are a number of  conditions involved. As you might expect, Sprint has responded to the $2.28 billion offer by saying it is illusory, not viable and inferior to the Sprint offer.

source: Clearwire via Engadget

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