Last month Sprint Nextel agreed to purchase a 50 percent stake in Clearwire. But Dish Network is looking to expand its service offerings by making a more attractive offer to acquire the wireless broadband provider. 

Clearwire agreed to sell to Sprint last month for $2.2 billion (about $2.97 a share). The debt ridden wireless broadband company, however, now finds itself in the middle of a bidding war after receiving a counter offer from Dish for $5.5 billion. 

Even though Dish is offering 11 percent more than Sprint, Clearwire might not be able to entertain the offer. In a recent statement, Clearwire stated it is "significantly limited by its current contractual arrangements" to negoiate with Dish. 

Sprint recently released a statement addressing the matter:

"The Dish proposal includes a series of interdependent commercial agreements, debt and equity purchases, and spectrum sales, which together with the other conditions required by Dish to complete the transaction, makes the proposal not viable."

The acquisition would benefit Dish greatly, seeing as the company recently received approval from the Federal Communications Commission to build its own LTE network.

[via CNET]