Clearwire Corporation (NASDAQ:CLWR) buyout drama is heating up even further. Reports indicate that the company’s investors have asked Sprint Nextel Corporation (NYSE:S) to raise its bid. DISH Network Corp. (NASADAQ:DISH) made a bid to steal Clearwire away from Sprint earlier this month, however, yesterday DISH asked the Federal Communications Commission to slow down the merger between Sprint and Softbank Corp (PINK:SFTBF), who made an offer to buy 70 percent of Sprint late last year.
CNET reports today that a number of Clearwire Corporation (NASDAQ:CLWR) shareholders say they will vote against the deal between the company and Sprint Nextel Corporation (NYSE:S). The publication said Glenview Capital Management has indicated that it will reject the $2.97 per share bid Sprint has made for Clearwire. Bloomberg reports that Taran Asset Management plans to file a complaint with the FCC saying that Clearwire Corporation is worth more than the amount Sprint has bid for it.
At this point Sprint owns more than half of Clearwire and is trying to purchase the rest of the company. Softbank Corp (PINK:SFTBF), the Asian company that’s in the process of buying 70 percent of Sprint, capped Sprint’s offer for Clearwire at $2.97 per share. Then DISH Network Corp. (NASDAQ:DISH) entered an unsolicited bid of $3.30 per share for Clearwire.
Sprint and Clearwire reportedly made a deal in December, and Sprint argues that since it owns the majority of Clearwire, the deal is secure. However, DISH Network Corp. (NASDAQ:DISH) pointed out that the deal for Sprint to buy Clearwire is contingent on the deal between Sprint and Softbank going through, because Sprint Nextel Corporation (NYSE:S) needs the cash it would get from Softbank to buy Clearwire.
At this point it looks like the ball is in Sprint’s court, at least for the moment.
