Not so fast, Sprint.
On Tuesday, Dish Network made an unsolicited bid for the wireless network operator Clearwire, trumping a previous offer by its majority shareholder, Sprint Nextel.
Under the proposal, Dish Network is bidding $3.30 a share, 11 percent more than Sprint. The bid by Dish Network values Clearwire at roughly $2.4 billion.
Sprint, which owns more than 50 percent of Clearwire, contends that the rival’s bid is “inferior.” In response to the offer, Sprint outlined that the Dish Network proposal was “illusory” and “not viable,” given the conditions of its current deal with Clearwire.
“Sprint believes its agreement to acquire Clearwire, which offers Clearwire shareholders certain and attractive value, is superior to the highly conditional DISH proposal,” Sprint said in a statement.
Dish Network and Sprint are vying for access to viable spectrum.
Dish Network have been steadily acquiring spectrum assets in recent years. In 2011, Dish Network bought the satellite operator DBSD North America out of bankruptcy, gaining access to broadband spectrum. Last month, the company won a critical regulatory ruling, gaining the right to convert some satellite airwaves for cellphone service.
With Clearwire, Sprint is hoping to expand its next generation of data services. Sprint is building out its Long Term Evolution, or LTE, network, which can support the latest smartphones like the iPhone 5.
DealBook: Dish Network Makes Bid for Clearwire
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DealBook: Dish Network Makes Bid for Clearwire
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DealBook: Dish Network Makes Bid for Clearwire
