Dish Network increased its offer to purchase Clearwire Corp to US$4.40 per share. At this price, the enterprise value of the wireless service provider is estimated at US$6.5 billion. This bid is 30% higher compared to the rival bid of Sprint Nextel.
The third largest US mobile service provider owns a little over half of the outstanding shares of Clearwire. The previous bid made was at US$3.40 per share, which forced the revision of the bid after criticism received from activist shareholders.
According to Charlie Ergen, Dish chairman and co-founder, through a statement, "The Clearwire spectrum portfolio has always been a key component to implementing our wireless plans of delivering a superior product and service offering to customers."
In trading markets, the shares of Clearwire jumped 23% to US$4.23 per share in trading after hours, from the previous high of US$3.43. Sprint rose by less than one percent and Dish share values fell 2% to US$39.25 per share.
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