Clearwire Caught in Bidding War Between Dish and Sprint

Michael Teague |

clearwireDish Network’s (DISH) announcement late on Wednesday that the company was besting Sprint Nextel’s (S) offer to buy the mobile broadband provider Clearwire (CWR) is the latest salvo in a complex and increasingly contentious bidding war between the two companies.

Dish topped Sprint’s offer of $3.40 per share of the $5.13 billion company with a counterproposal that would give Clearwire shareholders $4.40, putting the total for the deal at $6.5 billion.

The news unfolds against the backdrop of the concurrent bidding war between Dish and the Japanese mobile firm SoftBank over Sprint itself. Dish has led what many have called a smear campaign against SoftBank, wildly trumpeting fears about alleged ties between SoftBank and the Chinese government.

That deal now seems to be inching closer to realization, with Sprint and SoftBank having reached an agreement with U.S. regulators over national security concerns. In particular, SoftBank has agreed to remove equipment from one of its Chinese suppliers Huawei Technologies Co., also alleged to have close ties to the Chinese government.

Dish may have reason to do anything to turn at least one of these deals in its favor. The loss of Sprint, the nation’s third largest wireless provider, to a Japanese mobile company would be significant, as would the loss of Clearwire. Greater access to any aspect of the mobile market could be a boon to the company.

However, Dish’s lack of hesitation in making such a substantial counter offer only days before Clearwire shareholders vote to approve the deal with Sprint, much like the company’s attempts to tar SoftBank as an enemy infiltrator, are indications of just how urgently the company feels it needs at least one of the situations to turn in its favor.

Clearwire, meanwhile, has itself not been untouched by accusations of collusion with the Chinese Communist Party, and recently said that it too would remove Huawei’s products from its own in order to allay fears on the part of investors and regulators alike.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
DISH DISH Network Corporation 58.64 0.13 0.22 1,694,492
S Sprint Corporation 8.90 0.73 8.94 61,598,914
AEUA Anadarko Petroleum Corporation 7.50% Tangible Equi 40.66 -0.35 -0.85 11,119

Comments

Emerging Growth

CMX Gold & Silver Corp.

CMX Gold & Silver Corp is an exploration stage company. The Company is engaged in the acquisition, exploration and development of silver and copper/gold properties in the USA.

Private Markets

Wealthfront

Wealthfront is an automated investment service that serves as an alternative to traditional financial advisory services. The company manages a diversified, continually rebalanced portfolio of index funds on their clients’…

Trustify

Trustify provides trust and safety in both the digital and physical worlds through our vast network of on-demand Private Investigators.By removing the large retainers and high hourly rates that traditional…