January 9, 2013
DISH Network (NASDAQ: DISH ) has made a new bid for Clearwire (NASDAQ: CLWR ) . Clearwire is reviewing the offer, but Sprint (NYSE: S ) says its offer for Clearwire prohibits a deal with DISH.
Satellite TV provider DISH said it's offering $3.30 per common share of the telecom firm. The offer also includes DISH acquiring some Clearwire spectrum for $2.2 billion. The proposal is being valued at more than $5 billion.
Clearwire issued a statement summarizing the proposal from DISH and saying that "its fiduciary duties require it to engage with DISH to discuss, negotiate and/or provide information in connection with the DISH Proposal." It added that it has provided Sprint with the details of the offer.
Sprint currently owns 50% of Clearwire. Last month, the two companies agreed to the former's bid of $2.97 per share for the remaining Clearwire stake.
In its release, Clearwire said Sprint had responded that "Sprint has reviewed the DISH Proposal and believes that it is illusory, inferior to the Sprint transaction and not viable because it cannot be implemented in light of Clearwire’s current legal and contractual obligations. Sprint has stated that the Sprint Agreement would prohibit Clearwire from entering into agreements for much of the DISH Proposal."
Dish had made an initial offer prior to Sprint's bid for the stake. A special committee of Clearwire's board of directors "determined that the Sprint transaction was, for a number of reasons, a more-attractive alternative."