Clearwire Board Endorses Sprint’s Sweetened Bid

Clearwire’s board recommended Sprint Nextel’s new takeover bid of $3.40 a share, or about $2.5 billion, saying it’s the best offer available to the struggling wireless-service provider.

The increased price, which Sprint boosted from $2.97 a share May 21, tops a $3.30 bid from Dish Network. After the terms were changed, Clearwire rescheduled yesterday’s meeting for investors to vote on the deal until May 31. The new offer values all of Clearwire, including debt and Sprint’s current equity in the business, at $10.7 billion. While the board had also endorsed the lower bid, Sprint faced opposition from Clearwire’s shareholders, who said it undervalued the company. Sprint, which already owns slightly more than 50 percent of the business, is trying to buy the rest of the shares to gain control over Clearwire’s valuable spectrum -- something it needs to bolster its own network.