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Clearwire says it's considering DISH acquisition offer but still recommends Sprint deal

News by Andrew Kameka on Friday February 01, 2013.

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Sprint and DISH Network have made competing offers to acquire wireless carrier Clearwire, but the lower offer from Sprint is the one currently most-favored by Clearwire according to a proxy filing released today. Clearwire says that it is still entertaining Dish's offer to acquire the company for $3.30 per share, but it has not yet been convinced that the counteroffer is a better deal than the $2.97 per share offered by Sprint, the current majority shareholder of Clearwire.

Clearwire declined to accept $80 million in financing from Sprint because it wishes to keep options open should the Dish proposal prove to be the better offer. Clearwire has already agreed to a buyout deal with Sprint prior to Dish's counteroffer forced the company to reconsider and decline financing because Dish would withdraw its proposal if the $80 million transaction goes through. A majority of Clearwire shareholders would need to approve the deal, but vocal critics want a higher asking price than Sprint has shown it is willing to pay.

Sprint issued a statement today saying that it is pleased Clearwire continues to see its proposal as the best solution for the long-term health of the company. The third-place carrier said:

"Today's filing speaks for itself. After a rigorous and extensive two-year process, Clearwire pursued numerous strategic opportunities, including discussing the sale of spectrum with no fewer than 10 parties and a series of ongoing conversations with DISH that date back to 2010. Clearwire's proxy makes very clear that Sprint's definitive agreement to acquire Clearwire provides both the best value for shareholders and stability amid an uncertain future.

We continue to believe that the DISH proposal is illusory and conditioned on many things, including the receipt of governance rights, a spectrum sale and a commercial agreement which are not actionable under our merger agreement and other agreements between Clearwire and Sprint. We are pleased the Clearwire Board continues to recommend approval of our transaction and look forward to closing our merger and delivering even greater wireless service to the American consumer."

source: Sprint, via: Reuters

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Andrew Kameka
Andrew is based in Miami, Florida.

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