Clearwire Corp’s board agreed to a sweetened, US$2.97-a-share takeover bid from its wireless partner Sprint Nextel Corp, which is now offering US$2.2 billion to acquire the portion of the company it does not already own.
The new offer was approved by Japan’s Softbank Corp, which agreed in October to buy 70 percent of Sprint for about US$20 billion, the companies said in a statement on Monday.
The bid also has the backing of Clearwire’s strategic investors such as Comcast Corp and Intel Corp.
Photo: Reuters
Sprint is moving to acquire 100 percent of the company after their four-year joint venture struggled to build a nationwide wireless network, leading to billions in losses for Clearwire.
Sprint aims to take over Clearwire’s spectrum — the airwaves that let mobile devices operate — and use it to bolster its own network.
Sprint chief executive officer Dan Hesse said on Monday that the deal is “critical” to turnaround efforts at the third-largest US wireless carrier.
Clearwire’s shares fell 14 percent to close at US$2.91 in New York. Shares of the Bellevue, Washington-based company closed at US$3.37 at the end of last week, signaling that investors had expected a higher bid. Sprint rose 0.2 percent to US$5.56 on Monday.
For Sprint, the challenge now is getting the majority of Clearwire’s other investors to agree to the deal.
Sprint said it has commitments from Comcast, Intel and Bright House Networks LCC, which own about 13 percent of the voting shares. Two other investors, Mount Kellett Capital Management LP and Crest Financial Ltd, have voiced opposition to a Sprint takeover.
Clearwire CEO Erik Prusch said on Monday that his company explored a range of options, including a 2010 spectrum sale and financing alternatives, without success.
Google Inc and Time Warner Cable Inc, two other investors, sold their stakes for US$2.26 and US$1.37 a share respectively, Prusch said in an interview.
Craig McCaw’s investment fund Eagle River Holdings LLC, meanwhile, sold its holdings for US$2.97 last week.
“The board was unanimously able to determine this was the best path forward,” Prusch said.
Without the deal, Clearwire may have to restructure, Prusch said.
At Sprint, the move will let the company consolidate its network expansion, rather than forcing it to rely on a joint venture. That will help it better compete with market leaders Verizon Wireless and AT&T Inc, Hesse said.
“We really wanted to be in control of our spectrum assets, and this was the most efficient way to build one network,” Hesse said in an interview.
Sprint is working with suppliers to make devices compatible with the three separate airwave frequencies used by the combined network, he said.
So-called hot-spot broadband access devices could be available next year, with phones to follow in 2014, he said.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
RSS