Clearwire Corporation (CLWR) said it is still negotiating with both Sprint Nextel Corporation (S) and DISH Network Corp. (DISH) for a buyout deal. The company said in a proxy filing this week that it has not decided to officially change its recommendation to accept Sprint’s offer.
Clearwire Corporation (NASDAQ:CLWR) said it will continue to negotiate with both Sprint Nextel Corporation (NYSE:S) and DISH Network Corp. (NASDAQ:DISH). Earlier this week the Department of Justice reviewed the merger between Softbank Corp (PINK:SFTBF) (TYO:9984) and Sprint. DISH asked the Federal Communications Commission to slow down that merger because if the merger doesn’t happen, then Sprint won’t have the cash needed to buy Clearwire Corporation.
Today Bloomberg Reports that Clearwire Corporation (NASDAQ:CLWR) is still discussing buyout options with both Sprint Nextel Corporation (NYSE:S) and DISH Network Corp. (NASDAQ:DISH). The company said in a proxy filing that it still hasn’t decided to change its initial decision to accept Sprint’s offer. Sprint owns a little over half of Clearwire and wants to buy the rest of the company for $2.97 per share. However DISH made an unsolicited offer of $3.30 per share earlier this year.
Both DISH Network Corp. (NASDAQ:DISH) and Sprint Nextel Corporation (NYSE:S) are after Clearwire’s wireless spectrum. It’s a valuable commodity that’s in limited supply. Sprint says even though its offer amounts to less per share, its offer is better because it has fewer conditions and is simpler. However some Clearwire shareholders have been asking Sprint to increase its bid.
DISH Network’s offer requires Clearwire Corporation (NASDAQ:CLWR) to sell 25 percent or more of the stock, so it wouldn’t require Sprint to participate, although Sprint might have to approve the transaction. Sprint agreed to buy the rest of Clearwire in December, but that deal is contingent on Sprint getting the money from Softbank Corp (PINK:SFTBF) (TYO:9984), which has agreed to buy out 70 percent of Sprint.
At this point all of these potential deals still require the approval of regulators.