Dish Ups Bid for Clearwire30 May, 2013 By: Chris Tribbey
Dish Network has increased its tender offer to buy wireless company Clearwire for $4.40 in cash per share, a 29% premium over what Sprint Nextel Corp. has offered ($3.40).
Clearwire will hold a stockholders’ meeting May 31.
“The Clearwire spectrum portfolio has always been a key component to implementing our wireless plans of delivering a superior product and service offering to customers,” said Charlie Ergen, chairman and co-founder of Dish.
A letter delivered by Dish to Clearwire calls the proposal “clearly superior” to what Sprint has offered.
“It offers substantially greater value to Clearwire and your minority stockholders and a clearer path to value realization for all parties,” the letter reads. “Importantly, it also provides a meaningful alternative to the significant group of your minority stockholders that remain opposed to the Sprint merger.
“We also are confident based on our conversations with you and our review of your publicly available governance arrangements that it can be executed without being subject to a successful challenge by any of your existing major stockholders.”