SprintNextel Corp., currently being Clearwires majority shareholder, has been competing with Dish Network Corp. over Clearwire since January as both companies see Clearwire as the help they need to boost their wireless services.
Sprint Nextel Corp. raised its buyout offer for Clearwire Corp. to $5 per share yesterday. The decision was supported by a key group of shareholders. The offer would most likely put to an end the battle between the two suitors. Earlier this week Dish Network had to withdraw, at least for now, from a battle with Japans SoftBank Corp to buy Sprint itself. Dish declined comment on the new Clearwire offer.
Several analysts said Clearwire would most likely accept the final offer from Sprint.”We believe Clearwire shareholders will approve the $5 offer from Sprint regardless of any new overtures from Dish,” said BTIG analyst Walter Piecyk cited by Reuters.
Sprint used its stake in the company to change governance rules. This makes it even harder for a rival bidder to seal a possible deal as Clearwire signed a agreement of $115 million to be payed to Sprint in case another company buys its shares. Adding to that the 14% higher bid offered by Sprint, it becomes clear why investors agree that this would probably be the end of the acquisition battle for Clearwire.
Sprint Nextel Corp. shares rose by 1% yesterday. The wireless service provider is up 24.69% this year. Clearwire added 7.34% for the day to 74.57% year to day advance.
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