All-cash offer beats Sprint's current offer by 29-percent; minority shareholders urged to accept
Dish announced today that it has put in a cash tender offer to purchase all outstanding shares of Clearwire for the price of $4.40 per share, adding yet another twist into the relations between Dish, Clearwire, Sprint and Softbank. The deal stands proudly as a 29-percent premium over what Sprint is currently offering for the other 49.2-percent of Clearwire it doesn't currently own at $3.40 per share, and sweetens the deal further by offering to buy out the entire company all at once. In its offer, Dish explains that it will agree to purchase a smaller amount of Clearwire if only a portion of the minority shareholders agree to the deal, as long as it is greater than a 25-percent stake in the company. As another condition, Dish is also requiring that it receives at least 3 board member positions for that 25-percent stake, and more if a larger portion of the company is acquired.
Naturally, Dish is urging any and all shareholders to agree to accept its offering, as it will be a great competitive play in the complex mess of offers and mergers currently happening between the companies. If Clearwire agrees to let Dish acquire it, Softbank's offer to buy a 70-percent stake in Sprint -- a deal which had Sprint acquiring Clearwire as a condition -- could be compromised. In light of this new offer from Dish, Clearwire is postponing its scheduled May 31st shareholder meeting until June 13th in order to give enough time to review it. The offer will be available to Clearwire until June 28th, and Dish has expressed that it is ready and willing to finalize the deal as quickly as possible.