Clearwire minority shareholder Crest Financial has reiterated that it considers Sprint’s bid for the wimax operator too low, despite a recent increase of the offer.
On Monday Sprint agreed a price of US$2.97 for each outstanding share with…
Clearwire minority shareholder Crest Financial has reiterated that it considers Sprint’s bid for the wimax operator too low, despite a recent increase of the offer.
On Monday Sprint agreed a price of US$2.97 for each outstanding share with Clearwire’s board, but the US$2.2bn deal is subject to approval from Clearwire shareholders not associated with Sprint.
Today Clearwire shares were trading below the offer price at US$2.89.
In the meantime activist investor Crest increased its stake in Clearwire from previously 6.62% of the outstanding stock to now 8.34%.
While shareholders Comcast, Intel and Bright House – who together hold 13% of the company’s total shares – have already given their consent to the deal, Crest has support from fellow activist investor Mount Kellett which holds 3.6% of the total Clearwire stock.
Sprint needs to find support from 75% of the outstanding Clearwire shares for the transaction to go through.
Crest said it increased its stake to demonstrate its commitment to Clearwire and its confidence in the wireless operator’s network build out plan.
In a statement the investor said: “Crest intends to pursue all avenues available to it including its lawsuit against Clearwire, Sprint and others […] to protect itself and other minority shareholders in Clearwire from the unfair dealings of Sprint and Clearwire in this matter.”
The firm believes Sprint’s offer significantly undervalues Clearwire and doesn’t reflect the value of its spectrum holdings.
Sprint’s offer represents a premium of 128% on Clearwire’s closing share price the day before Softbank’s takeover discussions with Sprint were revealed. The companies subsequently agreed a US$20.1bn bid for a 70% stake in the number three wireless operator.
Clearwire’s substantial spectrum holdings are understood to be a key part of Softbank’s plans to expand Sprint and take on the duopoly of AT&T and Verizon Wireless.
