Clearwire committee gives nod to Dish takeover bid over Sprint

Summary:Point goes to Dish over Sprint on this round, but is it game over yet?

Clearwire's board of directors is sending a pointed message to shareholders: pick the bid from Dish Network over Sprint.

The decision was reported late on Wednesday with the shareholder vote pushed back to Monday, June 24.

Dish is offering shareholders approximately $4.40 per share compared to $3.40 a pop from Sprint for the 49 percent of Clearwire shares it doesn't already own.

The latest move comes after a busy week in the Clearwire-Sprint-Dish-SoftBank web of mergers and acquisitions.

On Tuesday, SoftBank sweetened the deal to nab Sprint, promising shareholders $21.6 billion to stave off Dish's chances of securing the carrier. That was after shareholder and advisory firm Egan-Jones Ratings reversed its position on the Japanese carrier's original $20.1 billion offer.

Yet it still doesn't match Dish's most recent bid of $25.5 billion .

On the sidelines is a bizarre legal battle in which Sprint filed a complaint last week that Dish's proposal to obtain Clearwire violates Delaware state law.

Dish chairman Charlie Ergen slammed the accusations in a letter addressed to Clearwire chairman John Stanton, retorting that such accusations are "incorrect and misleading."

Ergen has also been said to make a play for picking up LightSquared's radio frequencies to Dish's networking portfolio.

It was reported in May that the TV satellite giant made a $2 billion bid for LightSquared, which is owned by private investment firm Harbinger Capital Partners.

via Reuters

Topics: Networking, 4G, Tech Industry, Unified Comms

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.