Bid target Sprint Nextel gains support for its Clearwire offer

 
City A.M. Reporter
SPRINT Nextel’s sweetened offer for Clearwire was approved by the bid target’s board yesterday, in the latest twist in a round of consolidation in the wireless broadband and mobile phone industries.

Sprint, which is itself the subject of a multi-billion dollar bidding war, hiked its offer for Clearwire on Tuesday to value the firm at around $10.7bn (£7.1bn).

The firm’s new offer for the almost 50 per cent of the company it does not already own has been increased to $3.40 per share from $2.97 per share.

Clearwire said in a statement that Sprint’s increased offer, “when compared with other potential transactions reasonably available to the company at this time, is the most favourable potential transaction to the company’s unaffiliated stockholders”.

But some shareholders have said they will oppose the takeover at a vote later this month.

Meanwhile Dish Network has launched an advertising campaign in support of its $20.1bn bid for Sprint, claiming that a $25.5bn rival offer from Japanese group SoftBank could threaten US national security.

In response, SoftBank said that it is “committed to using only network equipment that is acceptable to the US government”.