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Sprint Nextel raises buyout offer for Clearwire

Receives support from majority stakeholders.

Wireless carrier Sprint Nextel Corporation has increased its offer price to $5 per share to acquire approximately 50 per cent stake in Clearwire Corporation, in an effort to end Dish Network Corporation’s earlier offer of $4.40 per share.

Sprint, which currently holds majority shares in Clearwire, said its new offer price values Clearwire at approximately $14bn.

Earlier in May, Sprint offered a price of $3.40 per share for Clearwire.

Following the new offer, a group of Clearwire stockholders, including Mount Kellett Capital Management, Glenview Capital Management, Chesapeake Partners Management, and Highside Capital Management have agreed to vote in favour of Sprint.

These stockholders, who collectively own approximately 9 per cent of Clearwire’s voting shares, also agreed to sell their shares to Sprint in the event of the non closure of transaction.

Earlier, Sprint received commitments from Comcast, Intel Corp and Bright House Networks, that jointly own approximately 13 per cent of Clearwire’s voting shares, apart from Clearwire’s directors and officers, who own approximately 45 pe rcent of the voting shares.

Citing its commitment to closing the Clearwire transaction and enhancing its position in the US wireless industry, Sprint said its revised offer provides attractive value for shareholders of both companies.

The transaction is subject to regulatory approvals and the approval of Clearwire’s stockholders.