Sprint Nextel’s acquisition of Clearwire Corporation received a boost today when minority investor Crest Financial, which has been waging a proxy war against the takeover, yielded.
In a letter to fellow Clearwire shareholders Crest said it was…
Sprint Nextel’s acquisition of Clearwire Corporation received a boost today when minority investor Crest Financial, which has been waging a proxy war against the takeover, yielded.
In a letter to fellow Clearwire shareholders Crest said it was satisfied with Sprint’s US$5 per share offer and would now vote in favour of the proposal.
“We are proud of our campaign and stand by our analysis,” Crest said in the letter.
“With this favourable resolution, we withdraw any statements made in the heat of battle that may be construed as disparaging to Clearwire, Sprint, their directors and officers, or any other participants in this hard fought contest.”
The commitment gives Sprint the necessary votes to get shareholder approval for its latest offer, which represents a 68% premium on its US$2.97 proposal agreed with Clearwire’s board last December.
Sprint’s US$5 per share offer came last month and at that time the wireless operator said it had already received commitments from 45% of the minority shareholders. It needs 50% to get the deal through and Crest’s 8% stake holding means it has surpassed that number.
Clearwire’s shareholders will vote on Sprint’s offer on 8 July.
