Clearwire Shareholder Offers Finance Deal

Crest Financial Limited, the largest Clearwire (Nasdaq: CLWR  ) shareholder not affiliated with Sprint Nextel (NYSE: S  ) , has proposed in a letter to Clearwire's board a financing arrangement "superior to the financing provided by Sprint Nextel Corporation," one that would allow the company to explore merger options other than Sprint's offer, according to a Crest announcement.

Crest would like Clearwire instead to consider selling its excess spectrum to DISH Network (Nasdaq: DISH  ) rather than give it up to Sprint for what Crest feels is less than what that spectrum is worth.

Crest's offer of $240 million in convertible debt, along with the $160 million in financing Clearwire has already received from Sprint, would give Clearwire enough capital to complete its planned build-out of 2,000 LTE sites plus an additional 2,133 LTE sites for its network, according to Crest.


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  • Report this Comment On April 05, 2013, at 2:21 PM, spokanimal wrote:

    Crest knows that Sprint's ridiculous, $2.97 offer to buy out clearwire was done at a pivotal point in time as clearwire ramps up it's initial TD-LTE cell sites that will constitute the sites that will experience the heaviest, and most profitable volumes. Not much capital is necessary since clearwire already has 8,000, state-of-the-art, network-vision-quality cell sites that need little more than LTE radios hung off of them.

    Sprint knows that, which is why they timed their bid and the softbank agreement the way they did... and Crest knows that, which is why they're providing clearwire alternatives to exploit their assets independently.

    Sprint is now so concerned that others will vie for clearwire's horribly under-valued assets that it has devised a scheme whereby clearwire executives and board members will effectively be "paid off" if they succeed in flushing their fiduciary duty to minority shareholders down the toilet and cramming the sprint bid down their throats:

    http://www.fool.com/investing/general/2013/03/06/clearwire-e...

    Corporate malfeasance doesn't get much more acute than that... but that may be what it takes to succeed in handing more radio frequency spectrum over to a foreign corporation than both Verizon and AT&T have..... Combined!

    Spokanimal

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