The retracted bid reportedly follows uncertainty over when federal regulators would allow LightSquared to deploy its wireless network.
Centerbridge had provisionally offered $3.3 billion for the wireless company, and was prepared to assume around $1.7 billion in various liabilities, but has now walked away from the deal due to “economic and non-economic reasons”, a LightSquared lawyer told local reporters.
The private equity firm was reportedly concerned that it would have to spend out a huge amount of money while waiting for approval from regulators for LightSquared’s national wireless network roll-out.
LightSquared has been struggling with bankruptcy since 2012 and Centerbridge’s offer last week seemingly pushed Dish Network – which has also been bidding to acquire the company – out of the running.
As yet it is unclear whether Dish, or any other investors, will pursue a bid for the company.
