Blocked Merger: Another Opportunity for Sprint Nextel Corporation (S) and DISH Network Corp. (DISH)?

Both Crest Financial and Mount Kellett Capital Management have opposed Sprint’s offer in favor of Dish’s $3.30 a share proposal. As per the recent filings that Crest made with the FCC, Sprint has valued Clearwire’s spectrum at $0.21 per MHz-POP. But as per Information Age Economics’ (IAE) estimation, the spectrum should range between $0.40 and $0.70 per MHz-POP.

Both Sprint and DISH Network Corp. (NASDAQ:DISH) have been fiercely contending to get Clearwire. In case the T-Mobile merger is blocked, both Sprint and Dish would do their best to scoop up the regional player. Sprint Nextel Corporation (NYSE:S) recently made it public that Clearwire wouldn’t be its final spectrum hunt; it would continue making more spectrum deals.

On the other hand, DISH Network Corp. (NASDAQ:DISH) has been trying to find a wireless partner so that it can construct its wireless infrastructure to offer mobile wireless services. If the T-Mobile-MetroPCS deal gets blocked due to opposition, the regional carrier would have no difficulty in finding interested suitors.

The bottom line

The wireless industry is taking quite an interesting turn. The combination proposals made by both Sprint and T-Mobile are facing hurdles. MetroPCS’s board has recommended its investors to vote for the deal, as it would prove beneficial for the joint entity. However only time can tell whether the T-Mobile deal will receive a go-ahead signal, or MetroPCS will find other suitors.

The article Blocked Merger: Another Opportunity for Sprint and Dish? originally appeared on and is written by Rajesh Marwah.

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