Clearwire Corporation Investors Ask Sprint Nextel To Up Bid

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Clearwire Corporation Investors Ask Sprint Nextel To Up Bid

Clearwire Corporation (NASDAQ:CLWR) buyout drama is heating up even further. Reports indicate that the company’s investors have asked Sprint Nextel Corporation (NYSE:S) to raise its bid. DISH Network Corp. (NASADAQ:DISH) made a bid to steal Clearwire away from Sprint earlier this month, however, yesterday DISH asked the Federal Communications Commission to slow down the merger between Sprint and Softbank Corp (PINK:SFTBF), who made an offer to buy 70 percent of Sprint late last year.

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CNET reports today that a number of Clearwire Corporation (NASDAQ:CLWR) shareholders say they will vote against the deal between the company and Sprint Nextel Corporation (NYSE:S). The publication said Glenview Capital Management has indicated that it will reject the $2.97 per share bid Sprint has made for Clearwire. Bloomberg reports that Taran Asset Management plans to file a complaint with the FCC saying that Clearwire Corporation is worth more than the amount Sprint has bid for it.

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At this point Sprint owns more than half of Clearwire and is trying to purchase the rest of the company. Softbank Corp (PINK:SFTBF), the Asian company that’s in the process of buying 70 percent of Sprint, capped Sprint’s offer for Clearwire at $2.97 per share. Then DISH Network Corp. (NASDAQ:DISH) entered an unsolicited bid of $3.30 per share for Clearwire.

Sprint and Clearwire reportedly made a deal in December, and Sprint argues that since it owns the majority of Clearwire, the deal is secure. However, DISH Network Corp. (NASDAQ:DISH) pointed out that the deal for Sprint to buy Clearwire is contingent on the deal between Sprint and Softbank going through, because Sprint Nextel Corporation (NYSE:S) needs the cash it would get from Softbank to buy Clearwire.

At this point it looks like the ball is in Sprint’s court, at least for the moment.

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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