This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

TheDeal: Clearwire Slips as Investors Balk at Sprint Offer

Stocks in this article: CLWR S

In December, Sprint disclosed in a Securities and Exchange Commission filing that its board had authorized management to bid $2.90 per share for Clearwire's minority equity. The price did not sit well with investors, and Sprint bumped it to $2.97 on Dec. 17.

Earlier this year, Dish Network Corp. offered $3.30 per share for Clearwire. Verizon Wireless offered to buy some of the company's spectrum for $1 billion to $1.5 billion for spectrum, minus the cost of lease obligations.

Crest had pushed Clearwire to wait until the ownership battle for Sprint is resolved, and then hold a competitive review. Sprint has agreed to a $20.1 billion deal with Softbank that would give the Japanese telecom a 70% stake. But Dish has made a competing $25.5 billion offer. Softbank granted Sprint a waiver so that Dish can conduct due diligence and negotiate with the wireless carrier.

Sprint shareholders are scheduled to vote on the Softbank offer on June 12. Martyn Roetter, a consultant who has advised Crest, said that the new bid is still inadequate. "Sprint is trying to sew Clearwire up before its own vote," he added. Mount Kellett Capital Management LP has previously criticized Sprint's buyout attempt. Representatives of Mount Kellett could not be reached Tuesday for a reaction to the revised bid.

Mount Kellett, Highside Capital Management LP, Glenview Capital Management LLC and Chesapeake Partners Management Co. formed a group to hold talks. Collectively, they hold more than 18% of the Class A shares.

There are questions about Clearwire's viability as an independent entity. Clearwire has said that its cash will only carry it until the first quarter of 2014. Sprint has agreed to provide Clearwire with $80 million per month in financing. Crest has offered to provide $240.million in convertible debt on terms that it says are better than Sprint's financing. Aurelius Capital Management LP said in April that it would chip in $80 million.

Egan-Jones Ratings Co. and Institutional Shareholder Services Inc. advised shareholders to accept the $2.97 offer. Glass, Lewis & Co. LLC said investors should reject the deal.

It will be a busy week and a half before the new voting date.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs