However, the sweetened bid did not help Sprint as Dish topped Sprint Nextel Corporation (NYSE:S)’s bid by proposing $4.40 a share. The regional carrier’s board has recommended DISH Network Corp. (NASDAQ:DISH)’s proposal against Sprint’s and has asked shareholder’s to vote against the latter in the June 24 meeting, as Dish’s offer values Clearwire Corporation (NASDAQ:CLWR) at $6.5 billion, including Sprint’s stake. The third largest US carrier sued both Clearwire and Dish on Monday, claiming that the offer is illegal since it breaches Sprint Nextel Corporation (NYSE:S)’s position and rights as Clearwire Corporation (NASDAQ:CLWR)’s shareholder. Sprint says that DISH Network Corp. (NASDAQ:DISH)’s proposal is ‘fooling Clearwire’s minority shareholders’ to sell their shares to the satellite provider and reject the national carrier’s offer at the vote. Clearwire Corporation (NASDAQ:CLWR)’s ownership is extremely crucial for Sprint’s future outlook of building a robust and extensive 4G LTE network.
What a turnaround for Clearwire! Last year before Sprint Nextel Corporation (NYSE:S)’s bid the money losing carrier was trading below $1.50 a share. Now it has two suitors fighting for its ownership and pushing its share as high as $4.70.
The bottom line
Though Dish has withdrawn its interest in acquiring Sprint, it has not given up its desire to break into the telecom space. The carrier is focusing on its bid for Clearwire Corporation (NASDAQ:CLWR) in which Sprint Nextel Corporation (NYSE:S) is a majority shareholder. DISH Network Corp. (NASDAQ:DISH)’s move to concentrate on Clearwire has a purpose. Even if the company buys the remaining share of Clearwire that Sprint doesn’t own, it would help the core satellite TV player to get into partnership talks with Sprint in the future. Again, if Sprint Nextel Corporation (NYSE:S) is unable to acquire Clearwire, it would be a setback for the telecom provider as it plans to use Clearwire Corporation (NASDAQ:CLWR)’s spectrum in its network deployment. It will be interesting to see how things move ahead for these players.
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Rajesh Marwah has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article Dish Drops Sprint, Sets Eyes on Clearwire originally appeared on Fool.com.
Rajesh is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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