New Sprint Offer Not Enough for Clearwire Investor

Clearwire's (UNKNOWN: CLWR.DL  ) largest minority stockholder, Crest Financial, is still urging other shareholders to vote against Sprint Nextel's (NYSE: S  ) proposed buyout of their company, even after Sprint raised its bid, according to Crest's filing with the SEC late yesterday.

Earlier this week, just prior to a special shareholders' meeting called to vote on Sprint's original $2.97-a-share offer, Sprint upped its offer to $3.40 a share. Clearwire's board has approved the new offer.

Crest wants to wait until the battle between DISH Network (NASDAQ: DISH  ) and Japanese telecom SoftBank for Sprint "is resolved because both DISH and SoftBank suggested in public statements that ownership of Clearwire is among the primary reasons for their desire to acquire control of Sprint."

Crest wrote that "A rejection of the Proposed Sprint-Clearwire Merger ... would enable [Clearwire] to conduct a direct competitive bidding process for Clearwire." Clearwire's own financial advisors "suggested that the implied equity value of Clearwire could be significantly higher than the $3.40 offered by Sprint," according to Crest.

The Clearwire shareholders' vote on Sprint's new offer has been rescheduled for May 31.The Sprint shareholders' vote on whether to accept SoftBank's bid for 70% of their company is not scheduled until June 12.


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  • Report this Comment On May 24, 2013, at 2:31 PM, spokanimal wrote:

    If Clearwire's own financial advisors are saying that Clearwire's equity value is significantly higher than the $3.40 that Sprint is offering, then why is Clearwire's board recommending that investors take the offer?

    Simple. Sprint created a "payoff" scheme whereby Clearwire's executives and board members receive a huge trove of "cashable stock options" if, and ONLY if, clearwire succeeds in convincing minority shareholders to take Sprint's ridiculously low $3.40 bid. The result is that minority shareholders get screwed, and clearwire brass laughs all the way to the bank!

    Prior to Sprint's original bid for clearwire, Clearwire ITSELF was demonstrating in every, quarterly conference call that Clearwire's value, net of debt, was FAR above the ridiculous price that sprint is offering. The obvious corporate malfeasance and trashing of their fiduciary duty to shareholders is absolutely massive in scope and the lawsuits that are gearing up to deal with it have tremendous merit.

    Crest is ABSOLUTELY CORRECT. There is EVERY reason to reject sprint's offer and wait for the outcome of the sprint/softbank/dish merger decision.

    EVERY indication of clearwire's true value has been much higher than the sprint bid. Softbanks own words have said that, Dish's own words have said that, Clearwire's words before the sprint bid said that, all of the major minority shareholders are saying that, independent appraisers of CLWR's worth are saying that, Verizon intimated that with it's $billion-dollar-plus offer for 1/10 of Clearwire's spectrum...

    ... and after 3 years of analysis of this company, I am telling you that as well.

    Vote NO on sprint's $3.40 bid for clearwire. This company is worth much more than that.

    Spokanimal

  • Report this Comment On May 24, 2013, at 3:05 PM, InvestorTheHaun wrote:

    If the company is worth that much more, why then is the stock price sitting at $3.40 per share? Isn't the market supposed to be able to determine the value of a company? Within the past year, the stock has been as low as $0.83 per share. Seems like I'd be deliriously happy with a buyout offer at this price. I'm not a stockholder, just my perspective looking in from the outside.

  • Report this Comment On May 24, 2013, at 4:39 PM, bointon wrote:

    spokanimal,

    Its funny. You complain how undervalue the company is, but as was point out, it was worth less than a buck a few months ago!

    Sprints put an offer out, then even raised it, and all people like you can do is complain. The only greedy person here is you & the shareholders.

    Someone offers to buy you out higher than what you were worth on the open market, and you just want more. Pot calling the kettle black is more like it.

  • Report this Comment On May 24, 2013, at 4:53 PM, Sboyd777 wrote:

    Sprint could have raised its bid to $75.00, and Crest would want $100.

    CLW was a penny stock 6 months ago. Where was everyone else trying to acquire this valuable spectrum back then?

    I hope they vote down the new offer, fall into bankruptcy, and the greedy shareholders (who have seen the stock price increase 400% in 6 months because of Sprint's interest-and that's still not good enough) get absolutely nothing!!!!

  • Report this Comment On May 25, 2013, at 1:45 AM, lumpia91791 wrote:

    spokanimal,

    At the end of the day Sprint is still in charge. If Clearwire is so valuable why do they have to take Sprints money now to stay afloat? All your talk still doesn't show a double digit "value" of its current stock. It's people like you who are looking far too ahead in its "potential" that will screw Clear.

    I doubt Sprint will rollover and let a rival buy it since its the MAJORITY SHAREHOLDER.

    Speaking of Sprint again, guess if it wasn't for them standing by Clear after most companies left it a few years back it wouldn't still be here. Way to bite the hand that feeds you. It's people like you that show Greed will always ruin innovation.

    -an actual Sprint customer

  • Report this Comment On May 29, 2013, at 5:19 AM, nivegulu wrote:

    To all the fools except Spok: Read this-

    "New Report by Former FCC Commissioner Refutes Sprint Study on Value of Clearwire"

    http://online.wsj.com/article/PR-CO-20130408-910454.html

    and

    "New Report by Former FCC Commissioner Refutes Sprint Study on Value of Clearwire

    On April 8, 2013, Crest filed a study with the FCC and the Securities and Exchange Commission. The new study by Harold Furchtgott-Roth, a former commissioner of the Federal Communications Commission, disputes the conclusions of a study commissioned by Sprint Nextel Corporation and a separate institutional equity research report published by DA Davidson about the value of Clearwire Corporation.

    Supplemental Report of Harold Furchtgott-Roth (April 8, 2013)

    Press Release"

    http://www.bancroftpllc.com/wp-content/uploads/2012/12/2013-...

    The report implies a pps of $9-15 for clwr after taking debt into account. Just because Sprint's offer is grossly unfair that does'nt mean that Crest will ask for $100 etc. All that is needed is a fair shake and not a milkshake ($3.4).

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