The special committee of wireless broadband operator Clearwire Corporation has recommended its shareholders accept Dish Network’s US$4.40 per share tender offer and to reject Sprint Nextel’s rival US$3.40 proposal.
Clearwire investors were set to…
The special committee of wireless broadband operator Clearwire Corporation has recommended its shareholders accept Dish Network’s US$4.40 per share tender offer and to reject Sprint Nextel’s rival US$3.40 proposal.
Clearwire investors were set to vote on Sprint’s offer today, but that ballot has been pushed back to 24 June. Meanwhile Dish has extended the expiration date of its tender offer from 28 June to 2 July.
Sprint already holds more than half of Clearwire’s stock and has been seeking to take full control of the spectrum-rich business for more than six months. The number three wireless operator agreed a US$2.97 per share price with Clearwire’s board in December, but Dish muscled in with a US$3.30 offer in January. Ahead of a planned shareholder vote in May Sprint upped its offer to US$3.40, which it said was its final offer.
A new vote was called but on the eve of the event Dish countered again, this time with a US$4.40 offer, as it looked to acquire a minimum of 25% of Clearwire’s stock. Sprint has also had to contend with activist investors such as Crest Financial which has waged a proxy campaign against the operator’s takeover attempt.
In a statement Sprint said it had “every intention of enforcing its governance rights” in Clearwire.
“Sprint is evaluating today’s statement from Clearwire’s Board and will review any corresponding filings before determining its next steps,” it said.
As the bidding war has intensified Clearwire’s stock has risen in kind. Ahead of Softbank’s offer for major shareholder Sprint, Clearwire shares were trading at US$1.30, while yesterday Clearwire closed at US$4.37 – an increase of more than 236%.
Evercore Partners is acting as financial advisor to Clearwire and Kirkland & Ellis is acting as counsel. Centerview Partners is acting as financial advisor to Clearwire’s Special Committee and Simpson Thacher & Bartlett and Richards, Layton & Finger are acting as counsel. Blackstone Advisory Partners has advised the company on restructuring matters.
