Clearwire board performs volte face; now favours Sprint over Clearwire

21 Jun 2013

The increasingly fierce battle for control of US WiMAX-turned-Long Term Evolution (LTE) firm Clearwire has taken a new twist, as its board of directors has reversed its recent decision to recommend satellite operator DISH Network’s USD4.40 per share tender offer for the company, over Sprint’s earlier USD3.40 per share offer. In light of Sprint’s increased USD5 per share offer for the roughly 50% of Clearwire that it does not already own, the board has thrown its weight behind the co-owner instead. The new share offer values the company at around USD14 billion.

Erik Prusch, president and CEO of Clearwire, commented: ‘The Clearwire board and special committee have determined that the USD5.00 per share transaction with Sprint represents the best path forward for the company and is in the best interest of our unaffiliated stockholders. The amended agreement with Sprint clearly acknowledges the significant value present in Clearwire: from our deep portfolio of wireless spectrum to the tremendous amount of progress the Clearwire team has made in improving our operations and beginning the construction of our next generation 4G LTE network’.

United States, Clearwire, DISH Network, Sprint Corporation (now part of T-Mobile US)