Clearwire’s Special Committee and Board of Directors have voted to recommend the Sprint transaction and recommend that Clearwire shareholders reject Dish Network’s tender offer.
This latest offer represents a 47 percent premium to Sprint’s previous offer of $3.40 per share announced on May 21, 2012. It also represents a 14 percent premium to the $4.40 per share from the last DISH offer and values Clearwire at approximately $14 billion, or about $0.30 per MHZ-pop.
Sprint has received commitments from Clearwire stockholders, including Mount Kellett Capital Management, Glenview Capital Management, Chesapeake Partners, and Highside Capital Management, which collectively own approximately 9 percent of Clearwire’s voting shares, to vote their shares in support of the transaction.
Sprint said it now has support from shareholders with 45 percent of Clearwire’s minority shares, just shy of the more than 50 percent it needs to take over the company. Sprint, already Clearwire’s majority shareholder, also had Clearwire agree to changes in its governance rules, which could make it much harder for a rival bidder to buy the firm.
Clearwire, for example, would owe Sprint a breakup fee of $115 million should the deal not go through.
A Dish buyout of 25% of Clearwire now looks nearly impossible. With Dish backing out of their $25 billion deal for Sprint, it could leave Charlie Ergen standing in a greenfield, primed for a triple play, holding the bag.
This game is already in double overtime, but you’d be crazy to rule anything out. Ergen might still hit one out of the park. This ballgame ain’t over and the crowd is going nuts.
Related Dailywireless articles include; Clearwire Board Backs Dish, SoftBank Upps the Bid for Sprint, Un-Clearwire?, Clearwire Ownership Vote Delayed 2 Weeks, 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