An activist investor in Clearwire Corporation has dismissed Sprint Nextel’s improved bid for the US wireless wholesaler.
Crest Financial, which has been directing a proxy campaign against the takeover, is urging fellow shareholders to vote down…
An activist investor in Clearwire Corporation has dismissed Sprint Nextel’s improved bid for the US wireless wholesaler.
Crest Financial, which has been directing a proxy campaign against the takeover, is urging fellow shareholders to vote down Sprint’s new US$3.40 per share offer which immediately received endorsement from the Clearwire board.
The target’s shares had traded above the new US$3.40 offer price yesterday, but stayed below it most of today.
Crest sent a letter to Clearwire’s board asking them to resist Sprint’s new proposal so that the target can examine rival presentations through a competitive process once Sprint’s own future is decided.
“Sprint’s new offer for Clearwire still significantly undervalues Clearwire and its assets and provides no protections to minority stockholders.
“Clearwire is the prize, and Sprint is trying to buy Clearwire on the cheap and lock-up Clearwire’s value before Sprint itself is purchased by Softbank or Dish.
“That lock-up is patently unfair to minority stockholders.”
Clearwire said in a statement: “Compared with other potential transactions reasonably available to the company at this time, [Sprint’s offer] is the most favourable potential transaction to the company’s unaffiliated stockholders”.
Sprint has received commitments from Comcast, Intel and Bright House Networks – which hold 26% of Clearwire’s shares not affiliated with Sprint – that they will support its new offer, 14% higher than its first.
Sprint CEO Dan Hesse has said that the latest bid is Sprint’s best and final offer, according to local media reports.
Clearwire shareholders will decide on the offer on 31 May, a day later than the date first announced when Sprint’s improved proposal was made.
