Sprint Nextel raised its buyout offer for Clearwire to $5 per share on Thursday and announced support from a key group of dissident shareholders, trumping rival suitor Dish Network.
Sprint, already Clearwire's majority shareholder, also had Clearwire agree to changes in its governance rules, which could make it much harder for a rival bidder to buy the firm.
After the new offer, which was the result of Clearwire shareholder pressure and a rival bid from Dish, Clearwire changed its recommendation in favor of the Sprint deal and postponed a June 24 shareholder vote until July 8.
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Sprint, the No. 3 U.S. mobile service provider, said the new bid gives Clearwire an enterprise value of more than $14 billion, or a roughly 14 percent premium over the value implied by Dish's bid to buy the minority shares for $4.40 each.
The latest offer will be the second time Sprint raised its bid since its December agreement to buy Clearwire's minority shares for $2.97 each.