Dish Network announced it recently completed a test of an LTE fixed wireless Internet technology that delivered speeds of 20 to 50 Mbps using 2.5 GHz BRS spectrum. Dish conducted the tests with regional wireless carrier nTelos, but Dish has said it would deploy virtually the exact same type of service if it is successful in purchasing spectrum from Clearwire.
Clearwire's board of directors unanimously recommended that shareholders accept Dish Network's $4.40 per share bid for Clearwire instead of Sprint Nextel's $3.40 per share offer to take control of Clearwire. Clearwire said it will delay until June 24 a vote on the transaction.
Dish Network faces a June 18 deadline to submit its "best and final" offer for Sprint Nextel, an effort complicated by the collapse of talks between Dish and Sprint over a reverse-breakup fee and Dish's need for more capital.
SoftBank's increased offer for Sprint Nextel indicates SoftBank CEO Masayoshi Son is prepared to go the distance. It is entirely possible that Dish Network's Charlie Ergen will increase his own bid for Sprint, but if Ergen is ultimately unable to defeat Son, what will Ergen do next?
Japan's SoftBank increased its bid for Sprint Nextel by 7.5 percent to $21.6 billion in an effort to counter Dish Network's competing $25.5 billion bid for Sprint. However, in a blow to Dish's prospects to seal the deal, Sprint said it has ended talks with Dish and that the special committee of its board that is evaluating Dish's proposal found that it "is not reasonably likely to lead to a 'superior offer'" as defined in Sprint's agreement with SoftBank.
Japan's SoftBank is in talks with Deutsche Telekom over a potential deal for T-Mobile US if its $20.1 billion offer to take control of 70 percent of Sprint Nextel collapses, according to a Reuters report.
Sprint Nextel is still planning to hold a shareholder meeting June 12 to vote on SoftBank's $20.1 billion proposal to buy 70 percent of Sprint, according to a spokesman, pushing back against a report that the company is considering delaying the vote as its board considers Dish Network's $25.5 billion counterbid.
SoftBank's $20.1 billion bid to gain control of 70 percent of Sprint Nextel won approval from a key shareholder advisory firm, Institutional Shareholder Services, but did not get the backing from another firm, Egan-Jones Ratings Co., which reversed its position and now opposes the offer in light of Dish Network's $25.5 billion counterbid.
Clearwire postponed a shareholder vote set for today on Sprint Nextel's $3.40 per share offer to take control of the company in the wake of Dish Network's revised $4.40 per share counterbid. Dish's offer, a 29 percent premium on Sprint's bid, shakes up yet again a complex and shifting series of maneuvers among various wireless players, and could complicate SoftBank's bid to acquire control of Sprint, according to analysts.
Japanese operator SoftBank's proposed $20.1 billion purchase of 70 percent of Sprint Nextel has cleared a major hurdle: The Committee on Foreign Investment in the United States, an interagency body headed by the Treasury and charged with overseeing deals in which a foreign entity gains control of a U.S. company, said "there are no unresolved national security issues" in SoftBank buying 70 percent of Sprint.