Dish Network Makes an Offer to Purchase Clearwire Spectrum, Shares
DISH Network has approached Clearwire to purchase certain spectrum assets, acquire up to all of Clearwire's common stock for $3.30 per share and enter into a commercial agreement with Clearwire.
The unsolicited DISH Proposal is only a preliminary indication of interest and is subject to numerous, material uncertainties and conditions, including the negotiation of multiple contractual arrangements being requested by DISH. It is also subject to regulatory approval.
Clearwire has already entered into a definitive agreement with Sprint Nextel for Sprint to acquire the approximately 50% stake in Clearwire it does not already own for $2.97 per share. According to Clearwire, its ability to enter into strategic transactions is significantly limited by its current contractual arrangements, including the Sprint Agreement and its existing Equityholders' Agreement.
“We look forward to working with Clearwire’s Special Committee as it evaluates our proposal,” said Tom Cullen, DISH executive vice president of Corporate Development, in a seperate statement from company yesterday.
In response to the DISH Proposal, Clearwire has received a letter from Sprint stating, among other things, that Sprint has reviewed the DISH Proposal and believes that it is illusory, inferior to the Sprint transaction and not viable because it cannot be implemented in light of Clearwire's current legal and contractual obligations. Sprint has stated that the Sprint Agreement would prohibit Clearwire from entering into agreements for much of the DISH Proposal.
Clearwire is currently constructing a 4G LTE Advanced-ready network to address the capacity needs of the market, and is also working closely with the Global TDD-LTE Initiative to further the TDD-LTE ecosystem.