The battle for controlling the remaining 49% stake of the 4G
) is becoming increasingly competitive. The battle for Clearwire
started long back in Dec 2012, when
Sprint Nextel Corp.
), the 51% shareholder of Clearwire, proposed a $2.97 per share
bid to acquire the remaining 49%. In Jan 2013, satellite TV
DISH Network Corp.
) offered a counter bid of $3.30 per share to acquire the
remaining 49% stake of Clearwire.
Clearwire shareholders will vote on May 31, 2013 to take a
final decision about the two bids. In May 21, 2013, Sprint hiked
its bid to $3.40 per share to ensure a favorable voting. However,
yesterday, DISH raised its bid to a substantial $4.40 per share
of Clearwire, which is 29% higher than that of the revised bid of
DISH's proposal has a total consideration of $6.5 billion and
includes several conditions. Per the conditions, the company must
get at least 25% of Clearwire's controlling stake to nominate
board members. It will pay $2.2 billion to get a 24% stake of
Clearwire's 2.66 GHz spectrum. Clearwire has to build and manage
a wireless network for DISH.
DISH's new bid contains another major issue. At present,
Clearwire is reeling under a financing deal with Sprint in the
form of convertible notes with a coupon rate of a mere 1% per
annum. DISH has decided to pay an additional $800 million to
Clearwire in order to terminate its financing deal with Sprint
but Clearwire should allow DISH to convert those notes into
common outstanding shares of Clearwire at a ratio of $2.50 per
In Apr 2013, ina major strategic move, DISH made a counter bid
of $25.5 million to acquire Sprint Nextel. Softbank of Japan had
earlier made a $20.1 billion bid for Sprint Nextel. DISH network
is trying hard to either acquire or collaborate with an
established wireless operator to build a nationwide viable
In 2012, DISH purchased 2 slots of the 40 MHz S-band wireless
spectrum fromTerreStar Networks Inc. and DBSD North America Inc.
for a consideration of $2.9 billion. A recent Bloomberg report
stated that DISH has made an offer of $2 billion to purchase the
wireless frequencies of the bankrupt wireless wholesaler
Just 3 days ago, DISH executed a Letter of Intent with
regional wireless network operator,
NTELOS Holdings Corp.
), to deploy a fixed-mobile broadband network to offer high-speed
Internet service to areas served by NTELOS. DISH Network
currently has a Zacks Rank #3 (Hold).
CLEARWIRE CORP (CLWR): Free Stock Analysis
DISH NETWORK CP (DISH): Free Stock Analysis
NTELOS HOLDINGS (NTLS): Free Stock Analysis
SPRINT NEXTEL (S): Free Stock Analysis Report
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