Sprint Nextel Corporation (NYSE:S) announced the completion of its transaction to acquire the remaining 50 percent stake in Clearwire Corporation (NASDAQ:CLWR) for $5 per share.
According to Sprint Nextel Corporation (NYSE:S), the shareholders of Clearwire Corporation (NASDAQ:CLWR) approved the deal during a special meeting of stockholders yesterday. The transaction was closed and effective on July 9, 2013.
Clearwire Will be Delisted at Closing Today
Following completion of the transaction, Clearwire Corporation’s common stock will be delisted from trading at the NASDAQ stock exchange, and no trading is expected to occur after closing of business today.
Sprint Nextel Corporation (NYSE:S) initially offered to acquire Clearwire Corporation (NASDAQ:CLWR) for $2.97 per share. However, the wireless carrier was compelled to increased its bid for the wireless 4G broadband provider to $5 per share after Dish Network Corp (NASDAQ:DISH) boosted its unsolicited buyout proposal from $3.30 to $4.40 per share.
It is interesting to note that Clearwire’s board of directors unanimously recommended DISH Network Corp (NASDAQ:DISH)’s $4.40 per share offer because it represents a 57 percent premium of the closing price of the stock in December 27 a year ago. The offer was also higher than the $3.40 per share, which was supposed to be Sprint’s best and final offer.
Sprint Wouldn’t Take ‘No’ for an Answer
Determined to gain 100 percent control of Clearwire Corporation (NASDAQ:CLWR), Sprint Nextel Corporation (NYSE:S) finally offered to acquire the company for $5 per share, and secured the support of several major shareholders including Glenview Capital, Mount Kellett Capital, Highside Capital and Chesapeake Partners, which collectively owns 9 percent of Clearwire’s voting shares. The shareholders even agreed to sell their stockholdings to Sprint in case the transaction fails.
Sprint Nextel Corporation (NYSE:S)’s acquisition price was 14 percent higher than the offer of Dish Network Corp (NASDAQ:DISH). In fact, Sprint also filed a lawsuit against Dish to prevent it from acquiring Clearwire.
Looking Up the Food Chain …
Meanwhile, Softbank Corp (PINK:SFTBF) (TYO:9984) entered a separate transaction to acquire 78 percent of Sprint Nextel Corporation (NYSE:S) to expand its business operations in the United States. The Federal Communication Commission (FCC) approved the transaction.