by Tom Taulli | February 1, 2013 10:25 am
Sprint (NYSE:S) really needs to buy the 50% of the equity in Clearwire (NASDAQ:CLWR) it doesn’t already own. It’s essential for Sprint to finalize a $20 billion financing from Softbank. Keep in mind that Clearwire owns valuable spectrum assets.
The problem: Dish Network (NASDAQ:DISH) also recently made a bid for Clearwire.
While the offer was a bit dicey — because of various conditions — it appears to be real. And in a recent SEC filing, Clearwire has indicated that Dish is still in the running. But then again, it also recommended that shareholders take the Sprint deal.
But that could be tough. Dish is offering $3.30 a share versus Sprint’s bid of only $2.97. So, if Sprint wants to close the transaction, it’ll probably need to match Dish’s offer.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
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