logo
Share SHARE
FONT-SIZE Plus   Neg

Sprint Nextel Says Its Offer Superior To Highly Conditional Dish Network Bid

Mobile phone carrier Sprint Nextel Corp. (S) said Wednesday in a proxy statement that "its agreement to acquire Clearwire, which offers Clearwire shareholders certain and attractive value, is superior to the highly conditional DISH proposal."

"In contrast, the DISH proposal includes a series of interdependent commercial agreements, debt and equity purchases and spectrum sales, which together with the other conditions required by DISH to complete the transaction, makes the proposal not viable," Sprint said in a statement.

"In addition, the DISH proposal would require Sprint to voluntarily waive rights that it holds as a stockholder of Clearwire and that it possesses through various vendor and customer contracts that significantly predate Sprint's proposed acquisition of the remainder of Clearwire," Sprint added.

Sprint was reacting to wireless network operator Clearwire Corp.'s (CLWR) announcement that its board is considering a proposed offer from satellite TV provider Dish Network Corp. (DISH) that topped the Sprint bid.

Dish on Tuesday floated an offer to acquire all of Clearwire's common stock for $3.30 per share along with some of its spectrum assets. Meanwhile, Clearwire said Dish's unsolicited offer is only a "preliminary indication of interest", and that its board will "engage DISH to discuss and evaluate the proposal."

Sprint said later in the day that it "believes its agreement to acquire Clearwire, which offers Clearwire shareholders certain and attractive value, is superior to the highly conditional DISH proposal."

Sprint agreed in mid-December to acquire the 49.2 percent stake in Clearwire that it currently did not own for $2.97 per share or a total of $2.2 billion. Sprint already has a 50.8 percent stake in Clearwire.

Dish's current offer, which represents a 13 percent premium to Clearwire's closing price Tuesday, trumps majority shareholder Sprint Nextel's buyout offer by 11 percent.

S closed Wednesday's regular trading session at $5.88, down $0.09 or 1.51% on a volume of 66.41 million shares, while CLWR closed at $3.13, up $0.21 or 7.19% on a volume of 84.09 million shares, and DISH closed at $36.85, up $0.88 or 2.45% on a volume of 4.97 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
A United Airlines flight from Shanghai to New Jersey was delayed for hours as an unruly passenger refused to vacate the seat of another passenger while boarding the aircraft in Shanghai. The flight was also forced to make an unscheduled stop at San Francisco International Airport to get a replacement crew after delays caused by the passenger. Nacho cheese sauce sold at a Sacramento gas station has tested positive for the toxin that causes botulism and killed one person, according to health officials. The California Department of Public Health or CDPH said it has confirmed that the cheese sauce sold at the gas station in Sacramento County tested positive for the toxin that causes botulism. Google's artificial intelligence or AI player AlphaGo defeated world's number one Go player Ke Jie of China. Go is an ancient Chinese board game, harder than chess.
comments powered by Disqus
Follow RTT