Clearwire has canceled its Friday morning vote where shareholders were expected to vote on whether or not to accept Sprint’s $3.40 per share offer, after Dish’s latest counter bid of $4.40 per share.
Dish’s deal values Clearwire at $6.3 billion, but unlike Sprint, Dish wouldn’t necessarily take complete control over the company. It is willing to settle for a minority stake as long as it can get 25 percent of the company. Clearwire has rescheduled the shareholder vote until Thursday, June 13, giving the special committee nearly two weeks to decide on Dish’s latest proposal.
Clearwire said its special committee found Dish’s latest proposal to be more “actionable” than Dish’s previous one.
Dish Chairman Charlie Ergen is also competing against Japan’s SoftBank Corp to buy Sprint, the No. 3 U.S. mobile service provider. Dish’s Clearwire buyout offer is separate from their Sprint bid.
Clearwire’s fate depends on the owners of the roughly half of the company’s shares that don’t belong to Sprint. Some minority shareholders in Clearwire, like Crest Financial, have fought Sprint’s offer for Clearwire as too low.
Crest Financial, which holds 8 percent of Clearwire’s stock, is fighting a proxy battle against Sprint’s takeover bid. Dish said it may buy out only minority shareholders as long as it can acquire at least 25 percent of Clearwire’s voting stock. Dish said it wants the right to pick at least three Clearwire board members and more if it acquires more of Clearwire’s shares.
On or before June 12, 2013, Clearwire intends to file with the Securities and Exchange Commission a Solicitation/Recommendation Statement on Schedule 14D-9 stating whether the Clearwire board of directors and the Special Committee recommends acceptance or rejection of DISH’s unsolicited tender offer.
Sprint offered to buy Clearwire in December for $2.2 billion but satellite TV provider Dish Network Corp announced a counterbid of $2.3 billion in January. The Sprint Buyout of Clearwire was also fought by some shareholders. Dish followed up in April by making a bid for Sprint.
Related Dailywireless articles include; Battle for Clearwire, Clearwire Committee Likes Sprint Offer Best, Verizon to Buy Clear Spectrum for $1.5 Billion?, Sprint Buyout of Clearwire Fought by Crest Financial, Sprint to Buy Clearwire, DISH Proposes to Buy Clearwire, Sprint Buying Clearwire?, Sprint + Dish?, Sprint Gets Majority Control over Clearwire, Sprint Won’t Buy Clear – For Now, Clearwire Cuts TD-LTE Deployment, China Mobile: Go For TD-LTE Launch, Dish: On the Move , Dish and Sprint Battle over PCS band Extension, Dish CEO: T-Mobile Partnership?, Clearwire: On the Hot Zone, Clearwire Cuts TD-LTE Deployment, South Korea Completes Nationwide LTE Coverage, Brazilian 4G Auction Raises $1.3B, Huawei LTE 4×4: Goes to 250 Mbps, Clearwire and China Mobile Announce TD-LTE Testing Plan