logo
Share SHARE
FONT-SIZE Plus   Neg

Clearwire Urges Stockholders To Accept DISH Network Offer - Update

Wireless service provider Clearwire Corp. (CLWR), said Wednesday its board has recommended stockholders accept DISH Network Corp.'s (DISH) cash tender offer to acquire all outstanding common shares of the company at $4.40 per share. The decision was based on the unanimous recommendation of the Special Committee consisting of independent, non-Sprint-affiliated directors.

The company's board also unanimously recommended that stockholders reject the $3.40 per share Sprint Nextel Corp. (S) merger. Sprint already owns a 50.8 percent stake in Clearwire and is vying to acquire the remaining stake in Clearwire.

The DISH tender offer has been amended and now is set to expire at the end of July 2, unless extended or terminated. The offer is subject to various conditions, including the tender of more than 25 percent of the fully diluted voting stock in Clearwire.

Meanwhile, on Monday, Sprint and Japan's third-largest mobile carrier SoftBank Corp. (SFTBY) amended their merger agreement that will see a sweetened cash consideration.

The amendment is seen as a move to thwart the unsolicited mid-April bid from DISH, which offered to acquire Sprint for $25.5 billion, including a cash consideration of $17.3 billion and $8.2 billion in stock.

As per the amended deal, SoftBank raised its cash consideration payable to Sprint shareholders at closing by $4.5 billion, which will bring the total cash consideration available to Sprint shareholders to $16.64 billion. SoftBank earlier agreed to pay around $12.1 billion in cash to Sprint shareholders and to invest $8 billion of new capital.

The deal is expected to close early July 2013.

SoftBank has now reallocated $3 billion from the $8 billion proposed capital investment towards cash payment to shareholders along with $1.5 billion of incremental capital from SoftBank. This will now raise the cash per share available to shareholders by $1.48 to $5.50 per share from $4.02. It will also then raise the total cash and stock per share offer price to Sprint shareholders from the earlier $7.30 to $7.65.

Clearwire shares closed Wednesday at $4.37, up 0.46%, on a volume of 13 million shares on the Nasdaq.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

More Breaking News

Editors Pick
Poultry giant Sanderson Farms has blamed the national anthem protests in National Football League for its lower sales for the fourth-quarter and full year. Sanderson Farms, which is one of the biggest chicken providers in the US, said that NFL protests involving players taking a knee during the national... Amazon would reportedly sell Google's Chromecast streaming adapter for this Christmas. The online retailer giant has banned the product from its site for the last two years and has presumably settle the issues. Though the product is not available for sale, it has listed 4K-capable Chromecast Ultra adapter. Europe's no-frills airline Ryanair recognized pilot union for a smooth holiday season ahead. The airline had a discussion with its pilots union in Britain, Germany, Italy, Spain, Ireland, Portugal to iron out the issues. The pilots working for Ryanair have been enjoying different status and many of them were reportedly not in the rolls as full timers.
comments powered by Disqus
Follow RTT