ISS Recommends Dish for Clearwire Buyout
Jun 14th 2013 3:46AM
Proxy firm ISS has sided with Dish Network Corp. (NASDAQ: DISH) in the battle between it and Sprint Nextel Corp. (NYSE: S) to buy Clearwire Corp. (NASDAQ: CLWR). The opinion means that the 4G spectrum that Dish needs to compete against AT&T Inc. (NYSE: T), Sprint and Verizon Wireless may become available soon. More importantly, the natural enemies of satellite broadcasting– the cable companies - will find themselves up against a more well-armed Dish as it can offer bundles of voice, TV and broadband.
Sprint has an offer to buy 78% of its shares from Japan's Softbank. An alternative offer has been made by Dish. Between the two deals, the war between Dish and Softbank has become unusually complicated. Softbank believes that part of Sprint's value is its ownership in Clearwire. Proxy firms have given Softbank the edge in the Sprint deal by recommending against Dish.
At this point, Softbank and Dish each likely will get only half of what they would like to have, which means each will walk away from the complex series of offers with visions of a combined Clearwire and Sprint tie up dead.
Filed under: 24/7 Wall St. Wire, Mergers & Acquisitions Tagged: CLWR, S, T