US wireless internet provider Clearwire has confirmed that it is still examining Dish Network’s offer for the remainder of the company and that a decision for or against it has not yet been made.
Following the announcement in an SEC filing Clearwire…
US wireless internet provider Clearwire has confirmed that it is still examining Dish Network’s offer for the remainder of the company and that a decision for or against it has not yet been made.
Following the announcement in an SEC filing Clearwire shares opened 1.5% above yesterday’s closing price of US$3.18. Shares later dropped to its previous levels.
Clearwire’s board accepted and recommended a bid from Sprint Nextel – which majority owns the wireless operator – in December for US$2.97 per share.
On 9 January Dish offered US$3.30 per share, a higher offer but with numerous material uncertainties and conditions attached, some of which would require approval from Sprint.
Clearwire is yet to make a definitive statement on Dish’s bid but its indecision has meant it has had to pass on tapping finance from Sprint, which was part of the number three operator’s offer. This is the second month it has had to pass on financing, which would have now bolstered it by US$160m.
Sprint dismissed the Dish bid at the time and reiterated its scepticism today: “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.”
Today’s filing also disclosed that Dish and Clearwire had been in discussions since mid-2011.
Evercore Partners is Clearwire’s financial adviser. Kirkland & Ellis is providing legal advice. Centerview Partners advises Clearwire’s special committee, with Simpson Thacher & Bartlett and Richards, Layton & Finger acting as counsel.
Citigroup is financial advisor to Sprint while Skadden, Arps, Slate, Meagher & Flom and King & Spalding are acting as counsels.
