Dish Network Corp. (DISH) won't file an official opposition in
the regulatory review of Softbank Corp.'s (9984.TO) plans to buy a
70% stake in Sprint Nextel Corp. (S) for $20 billion, citing its
own ongoing discussions acquire Clearwire Corp. (CLWR).
Sprint owns the majority of Clearwire and has agreed to buy the
remaining stake, but Dish proposed a higher offer earlier this
month that is being reviewed by Clearwire's board. Dish had
previously pushed the FCC to extend the time for parties to file a
so-called petition to deny, which the regulator moved to Jan. 28
from a previous deadline of Jan. 4.
In a letter to the FCC Monday, Dish notified the commission of
its intention to not file a petition to deny approval of the deal,
"due, among other things, to the uncertainty surrounding the
ownership of Clearwire and Dish's continued negotiations with the
Special Committee of Clearwire's Board of Directors to acquire the
company or certain assets of the company."
Earlier this month, Dish proposed a $3.30-a-share offer for
Clearwire, above Sprint's agreement to pay $2.97 a share. Shares of
Clearwire recently traded down 3% at $3.27, implying that investors
expect an even higher deal.
In its letter Monday, Dish said it will participate in the
"reply round" of the review, where it can submit comments on the
deal to the commission.
Dish has previously asked the FCC to halt the regulatory-review
"shot clock" for Softbank's acquisition of the Sprint stake, citing
the uncertainty about the future of Clearwire. Sprint has opposed
that halt, calling it "an effort to manipulate the Commission's
processes to gain leverage in an attempted corporate takeover."
The FCC's informal review clock is a countdown of its goal to
complete reviews within 180 days of public notice. It has the power
to halt the clock, which currently stands at day 59.
Several Clearwire shareholders have publicly opposed Sprint's
offer, including suing to block the deal, alleging that Sprint used
its leverage as majority shareholder to secure a lower price and
that Clearwire's board didn't conduct a complete deal-evaluation
process.
A special committee of Clearwire's board is evaluating the Dish
offer.
Sprint owns 50.45% of Clearwire and has called Dish's offer
"illusory," insisting it won't let it happen.
Sprint needs a majority of the non-Sprint shareholders to
approve the takeover. It has secured the support of Comcast Corp.
(CMCSA, CMCSK), Intel Corp. (INTC) and Bright House Networks LLC,
who collectively own about 13% of Clearwire's voting shares,
meaning it needs an additional 13% to clear the deal.
Write to Thomas Gryta at thomas.gryta@dowjones.com
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