US DTH provider Dish Network has dropped out of the running to buy shares in Clearwire Corporation leaving mobile operator Sprint Nextel in pole position to take over the wireless internet provider.
Dish, controlled by billionaire Charlie Ergen, had…
US DTH provider Dish Network has dropped out of the running to buy shares in Clearwire Corporation leaving mobile operator Sprint Nextel in pole position to take over the wireless internet provider.
Dish, controlled by billionaire Charlie Ergen, had lodged a US$4.40 per share tender offer to buy a minimum of 25% of Clearwire’s stock, but it has withdrawn the offer after the target’s board recommended Sprint’s US$5.00 offer.
Sprint, which already holds half of Clearwire’s shares, has received commitments from 45% of the minority shareholders to accept its latest offer – it needs a majority of the remaining investors’ votes to complete the deal.
Sprint’s US$5.00 offer represents a 68% premium on its first offer of US$2.97 made last December – the result of two bids from Dish in January and May which pushed up the price considerably.
Sprint’s offer for Clearwire is contingent on the completion on Softbank‘s US$21.6bn takeover of Sprint, which can be completed providing it gets the green light from the FCC.
Dish had also been in the running for Sprint but pulled out of the process last week saying it would be “impracticable” to make a new offer. The satellite broadcaster had been undertaking due diligence but Sprint’s special committee said that it did not think Dish’s interest would lead to an offer which was superior to Softbank’s.
