US wireless broadband specialist Clearwire has announced that it has received an unsolicited, non-binding proposal from satellite TV giant DISH Network to acquire all of its common stock for USD3.30 per share – subject to minimum ownership of at least 25% and the granting of certain governance rights. DISH says that it will also provide Clearwire with financing on specified terms.
According to a statement from Clearwire, DISH wants to acquire spectrum covering approximately ‘11.4 billion MHz-PoPs’, equivalent to approximately 24% of Clearwire’s total spectrum holdings, for USD2.2 billion. As part of the deal, Clearwire could sell or lease an additional 2MHz of its spectrum to DISH and also provide certain services such as network management, construction and maintenance for DISH’s proposed Long Term Evolution (LTE)-Advanced network, which will use a 40MHz block of AWS-4 spectrum in the 2GHz band.
As previously announced, on 17 December 2012 Clearwire entered into a definitive agreement with majority shareholder Sprint Nextel to sell the latter the almost 50% stake that it does not already own, for USD2.97 per share. Clearwire notes that some aspects of DISH’s proposal may not be permitted under the terms of its current legal and contractual obligations to Sprint.