Sprint Nextel Corporation (NYSE:S) has sweetened its offer for 50 percent stake in Clearwire Corporation (NASDAQ:CLWR) it doesn’t currently own. Sprint Nextel Corporation (NYSE:S) said it has submitted a revised offer of $3.40 per share to the Board of Directors of Clearwire Corporation (NASDAQ:CLWR). The latest offer is a 14 percent premium to its previous offer of $2.97 a share. Sprint Nextel Corporation (NYSE:S) said it is the best and final offer. The revised bid values Clearwire Corporation (NASDAQ:CLWR) at $10.7 billion.
Acquiring Clearwire Corporation (NASDAQ:CLWR) is crucial to Sprint Nextel Corporation’s competitive position in the U.S. wireless industry. Sprint Nextel Corporation (NYSE:S) is uniquely positioned to benefit from the 2.5 GHz spectrum assets of Clearwire. Its Network Vision architecture has the capabilities for better alignment, integration and utilization of the 2.5 GHz spectrum assets. The revised bid comes after massive pressure from shareholders who wanted a higher valuation for Clearwire.
The revised offer is subject to approval by Clearwire Corporation (NASDAQ:CLWR) board. The Special Committee and board of Clearwire has repeatedly told shareholders that a merger with Sprint Nextel Corporation (NYSE:S) is the best strategic alternative for the company. Clearwire has already received commitments from Bright House Networks LLC, Intel Corporation (NASDAQ:INTC) and Comcast Corporation (NASDAQ:CMCSA) to vote in favor of the deal. These three companies collectively own 26 percent stake in Clearwire.
If Clearwire Corporation (NASDAQ:CLWR) board approves the offer, it will go through customary closing conditions like shareholders’ voting and regulatory approval.
Analysts already expected Sprint Nextel Corporation (NYSE:S) to raise its offer after Clearwire Corporation (NASDAQ:CLWR) shares rose last week to $3.20 a share. The offer comes just a few hours before Clearwire shareholders were about to vote today against Sprint Nextel Corporation (NYSE:S)’s previous offer which they considered too low.
Sprint Nextel Corporation (NYSE:S) itself is an acquisition target as Japan’s Softbank Corp (OTCMKTS:SFTBF) (TYO:9984) is battling with Dish Networks. Sprint Nextel Corporation (NYSE:S) has received a waiver from Softbank Corp (OTCMKTS:SFTBF) (TYO:9984) to consider DISH Network Corp (NASDAQ:DISH)’ offer of $25.5 billion.
Sprint Nextel Corporation (NYSE:S) shares were up 1.23 percent to $7.38, while Clearwire Corporation (NASDAQ:CLWR) rose 3.99 percent to $3.39.
