Analysis: Sprint Should Increase Clearwire Bid to Avoid Tension with Dish

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Sprint Nextel Corp should consider increasing its offered deal for Clearwire Corp. Otherwise they might face contentious relationship with Dish Network Corp, owned by billionaire Charlie Ergen.

Clearwire shareholders will vote on June 24 on the Sprint's US$3.40 per share piece offer to buy the rest of the company it does not own. Sprint is the majority owner of Clearwire. On the contrary, Clearwire's board recommended its shareholders to accept the higher offer from Dish priced at $4.40 per share piece instead.

If the offer from Dish pushes through, Sprint would end a relationship with the company as to whether the satellite provider becomes a minority Clearwire shareholder. Another angle being looked at is that the two companies will agree to a network partnership. However, analysts say that either way, an arrangement as such could be stir tension for Sprint.

Both Dish and Sprint agreed to be acquired by SoftBank Corp. The two companies want access to a trove of wireless airwave rights owned by Clearwire. SoftBank also stated that it is important for Sprint to purchase the Clearwire spectrum.

Tags
Sprint, Dish Network, Softbank

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