Clearwire Investors Use Dish to Demand Sprint Raise Offer

Charlie Ergen is becoming the financial savior that Clearwire shareholders never expected. And he doesn’t even have to open his wallet.

Ergen, the chairman of Dish Network, made a surprise counteroffer of $3.30 a share for Clearwire, topping a $2.97 bid from Sprint Nextel, which already owns more than 50 percent of the wireless-network operator. Clearwire closed as high as $3.30 last week, reaching the level of Dish’s proposal for the first time since it was disclosed Jan. 8. While a Dish deal is a long shot because it’s subject to conditions that may require Sprint’s approval, it’s enough to embolden Clearwire’s minority investors to push Sprint to at least match the bid. With the stock already at that level, traders are betting Sprint will increase its bid by 11 percent, more than any other similar-sized deal pending in North America. Sprint, which needs backing from more than half of Clearwire’s minority shareholders to succeed, is already facing opposition from owners including Taran Asset Management and Crest Financial Ltd.