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It would be "an absolute outrage" for Clearwire (CLWR -0.8%) to be sold at Sprint's (S -0.8%)...

  • Friday, December 14, 2012, 11:18 AM ET
    It would be "an absolute outrage" for Clearwire (CLWR -0.8%) to be sold at Sprint's (S -0.8%) $2.90/share offer price, declares 3.6% activist Clearwire owner Mount Kellett in a letter to the board. To further demonstrate its commitment to fighting for a higher bid, Mount Kellett assigns Clearwire a value of $6.30/share based on some back-of-the-envelope math that values the carrier's spectrum at $18B. Fellow activist investor Crest Financial is also intent on receiving a higher offer. (earlier) (Nov. letter)
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This news story has 5 comments:

  •  
    I understand how Mount Kellet feels, but two weeks ago, they were crying about how Clearwire should see the Spectrum. Yea, now what do you think? If Cleariwre would have listened to them, the company would be worth $2.90.

    Now that there is some interest, they are now singing a different tune!
    14 Dec 2012, 01:44 PM Reply Like
  •  
    $2.90 is too low. Apparently Sprint thinks either it's position is defensible, or no others are going to be interested. I think that might be a bit myopic, if true. If that spectrum is truly as valuable as we all think it is, there will be many interested parties that can easily do the deal, liquidate the operation and debt, and have spectrum. The math on that has to be north of $3.
    14 Dec 2012, 01:59 PM Reply Like
  •  
    Agreed. Probably not six per share, but who counters a lowball offer with a sane counteroffer?

    Even if it's on the low side of the average of those two offers, it's still a sizable payday to shareholders.
    15 Dec 2012, 03:37 AM Reply Like
  •  
    Clear is worth what Sprint is willing to pay. With the stock trading at or below a dollar in the last year and no other suitors knocking on their door, the phrase 'you are worth what someone is willing to pay' comes to mind. Or go bankrupt and you shares are worth zero.
    14 Dec 2012, 03:02 PM Reply Like
  •  
    Should the Big Bad Wolf have been called the Activist Wolf? Oh no, but if there is any justified resistance we should call the victims the Activist Little Pigs.

    It comes to mind:
    Snidely Whiplash is trying to tie someone to the railroad tracks, how dare they refuse the rope.
    14 Dec 2012, 04:50 PM Reply Like
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