Join        Login             Stock Quote

Clearwire (CLWR) To Take $80M Sprint Financing, To Continue Dish (DISH) Talks

 February 27, 2013 11:12 AM

(By Balachander) Clearwire Corp. (NASDAQ: CLWR) said it has taken the $80 million March draw from Sprint Nextel Corp. (NYSE: S), in a move that may thwart a rival bid from Dish Network Corp. (NASDAQ: DISH).

Clearwire said the Special Committee of its board plans to continue talks with Dish, which had last month announced an unsolicited buyout proposal of $3.30 per share for Clearwire. 

[Related -Sprint Corporation (S): Sprinting To $10?]

Sprint, which already has a 50.8 stake in Clearwire, agreed in mid-December to buy the remaining 49.2 percent stake in Clearwire for $2.97 per share or a total of $2.2 billion. Sprint is the third largest wireless carrier in the U.S.

Sprint needs approval from Clearwire's minority shareholders to proceed with its deal.

The move by Clearwire on Wednesday further complicates Dish Network's effort to buy the provider of fourth generation (4G) wireless broadband services, the Wall Street Journal reported quoting people familiar with the situation as saying.

"One sources said the draw isn't intended to dissuade Dish from pursuing the company," the WSJ reported.

[Related -Sprint Corporation (S): Flexing Spectrum Muscle Amid Network Evolution]

"The Special Committee will pursue the course of action that it believes is in the best interests of Clearwire's non-Sprint Class A stockholders," Clearwire said on Wednesday.

After a rigorous and extensive two-year process, Clearwire pursued numerous strategic opportunities, including discussing the sale of spectrum with no fewer than 10 parties and a series of ongoing conversations with Dish that date back to 2010.

Clearwire's 4G network spans the nation and covers over 130 million people in around 80 U.S. markets. Clearwire has publicly stated that it has 60 MHz of spectrum beyond its operating needs in the top 100 Metropolitan Statistical Areas (MSAs). Clearwire owns or leases spectrum covering about 46.6 billion MHz-POPs nationwide.

Meanwhile, Clearwire and Sprint have amended agreement that will allow Clearwire, at its option, to take the last three draws under the Sprint Financing Agreements whether or not an accelerated build out agreement has been entered into by the parties.

Clearwire said it does not expect to enter into an accelerated build-out agreement with Sprint at this time.

On Wednesday, CLWR shares fell 1.56 percent to trade at $3.15, while Sprint shares inched up 0.35 percent to trade at $5.80. DISH shares traded 0.14 percent lower at $35.09.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.