Sprint Raises Bid for Clearwire
Sprint Nextel Corp. (NYSE:S) has increased its offer for Clearwire Corp. (NASDAQ:CLWR) by 14 percent, hoping to win over strong opposition to the deal and persuade shareholders to turn down a counter offer from Dish Network Corp. (NASDAQ:DISH).
Sprint’s previous offer of $2.97 a share for the 49 percent stake in the seventh largest cellular network in the U.S. has not been well received by Clearwire’s investors. Clearwire stock has traded well above the initial offer, which unsurprisingly has ignited strong opposition among shareholders.
**Best and final offer**
The Clearwire stock price was at $3.39 on Tuesday, up 3.99 percent from its Monday’s close in New York but below the Sprint’s increased offer of $3.40 per share. That compares with Dish’s proposal of $3.30 a share.
Sprint had said that the improved bid—which values Clearwire at $10.7 billion—was its “best and final offer”, the Wall Street Journal reported on Tuesday, May 21.
Still, it remains to be seen whether the new offer of the third largest U.S.-mobile carrier will be accepted. The amended offer will be reviewed by a special committee of Clearwire’s board, the Washington-based company said on Tuesday. Sprint currently owns just over 50 percent of Clearwire.
**Battle for Sprint**
!m[Meanwile, Battle for Sprint Continues](/uploads/story/2423/thumbs/pic1_inline.png)
Sprint itself is a subject of a takeover battle between Japan’s SoftBank Corp and U.S. direct-broadcast satellite service provider Dish Network Corp. Sprint had agreed to a $20.1 billion offer from SoftBank for 70 percent of its shares before Dish put forward a surprise offer of $25.5 billion. The move followed the separate bid of $3.30 a share for Clearwire from Dish that has lifted the Clearwire stock price permanently above the Sprint initial offer since January.
Sprint has agreed to start negotiations with Dish but hasn’t dropped its support for the deal with the Japanese company.
**The Clearwire stock price was $ 3.40 as of 16.03 GMT, 21.05.2013**
**The Sprint stock price was $ 7.36 as of 16.03 GMT, 21.05.2013**
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