Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



DISH Fires Up Clearwire Investors

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Could DISH Network's (NASDAQ: DISH  ) counteroffer to Sprint Nextel's (NYSE: S  ) offer to buy Clearwire (UNKNOWN: CLWR.DL  ) actually succeed? It seems like a long shot because of the strings attached to DISH's tender, but it could still affect what Sprint will need to pay.

On its surface, DISH's $3.30 a share bid seems superior to Sprint's $2.97 offer, and several of Clearwire's minority shareholders are using DISH's bid as clear evidence that Sprint's price falls way short.

Clearwire shareholders Mount Kellett Capital Management, which holds a 7.3% stake, and Crest Financial, which holds 8.3%, have already complained to the Federal Communications Commission about Sprint's offer, and Bloomberg is reporting that Taran Asset Management, holder of a 0.4% stake, will also file a complaint. In addition, Bloomberg cites a person with knowledge of the situation saying Glenview Capital Management, which owns 4% of the Class A common stock, also plans to reject the Sprint offer.

Clearwire's board of directors have already approved the sale to Sprint, which already owns all of Clearwire's voting Class B shares. But a majority of the Class A shareholders also have to approve the transaction. The four investors mentioned above together control only about 20% of those shares, but the clamor they are causing may persuade more holdouts.

But there's less to DISH's non-binding offer than the share price. The conditions DISH wants Clearwire to make may be too much to swallow -- at least for Clearwire's board. For one thing, DISH wants to be able to buy some of Clearwire's valuable spectrum. For another, it wants Clearwire to help finance the deal.

However, if all DISH wanted to do is to instigate shareholder unrest in order to make Sprint pay more for Clearwire, it may have already succeeded. A higher price tag may force Sprint into selling off some of the spectrum it will get with the Clearwire deal, and if so, DISH may just be there ready to buy it.

2013 and beyond
The Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 31, 2013, at 10:06 AM, Luther8919 wrote:

    With Dish now in the game which company winning the acquisition would have a larger upside to CLWR?

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2222453, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:45:53 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
CLWR.DL $0.00 Down +0.00 +0.00%
Clearwire Corp CAPS Rating: **
DISH $53.97 Up +0.06 +0.11%
DISH Network CAPS Rating: **
S $6.65 Up +0.01 +0.15%
Sprint CAPS Rating: **