Not giving up easily on taking full control of its 4G partner, Sprint Nextel Corp. increased its bid for Clearwire LLC to $5 a share Wednesday afternoon.
Sprint, which already owns a 50 percent stake in Clearwire, says the increased bid values Clearwire as a whole at approximately $14 billion, a 47 percent premium over Sprint's previous bid. The new offer also handily beatsDish Network Corp.'s $4.40-a-share bid.
Clearwire's special committee and Board of Directors have voted to recommend the revised Sprint transaction and recommend that Clearwire shareholders reject Dish Network's tender offer. The Clearwire shareholder meeting is now scheduled for July 8.
It has already been a busy week in the M&A love triangle between Clearwire, Dish and Sprint. The third-ranked U.S. cellular operator went after the cable operator in court on Tuesday. Dish followed up on Wednesday by dropping its bid for Sprint and saying that it would focus on acquiring Clearwire and a chunk of its big bandwidth holdings instead. (See Sprint Dishes Out a Lawsuit Over Clearwire and Dish Throws in the Towel on Sprint Buy.)
Got all that? Good! Tune in next time for more of the Clearwire spectrum soap opera!
— Dan Jones, Site Editor, Light Reading Mobile