The buyout offer made by Sprint Nextel Corp for Clearwire Corp has been raised to US$5 per share after announcing the move was supported by a group of shareholders that would most likely end the battle with Dish Network Corp for control of the company.
Sprint is currently Clearwaire's majority shareholder has been locked in a public battle with Dish Network for Clearwire since January of this year. Both companies are seeking to own the vast spectrum allotted for Clearwire to help either of them become the market leader in the wireless services market.
Clearwire placed its support behind the latest offer from Sprint, which is another blow to the bid of Dish Chairman and Founder Charlie Ergen to expand his satellite television services into the wireless market.
Dish for its part declined to make any comment on the Clearwire offer, but many analysts are saying this would put Sprint over the top against Dish in the battle for the company.
Aside from the top tier price, placing Clearwire's enterprise value at US$14 billion and adding on a 14% premium over the rival bid, Sprint also moved to change the company's by laws in order to make it harder for a rival bidder create a protracted war over the company. Another change would be the mandated break-up fee of US$115 million or GBP74 million that Clearwire has to pay should the latest deal fail.
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