Seeking Alpha

For Sprint (S -0.4%) to acquire the 48% of Clearwire (CLWR +14.5%) it doesn't own, it needs the...

For Sprint (S -0.4%) to acquire the 48% of Clearwire (CLWR +14.5%) it doesn't own, it needs the support of shareholders representing over half of non-Sprint-owned shares. That could be tough without a higher bid, given activist investors Mount Kellett and Crest Financial own 14% of Clearwire, and continue to argue Clearwire is worth more. But the fact Clearwire is saddled with over $4.2B in debt and has a major 4G LTE buildout ahead of it gives Sprint some leverage. Stifel:  "It’s Sprint or nobody ... [Clearwire is] losing money hand over fist." (previous: I, II)
Comments (5)
  • Sand Paints
    , contributor
    Comments (69) | Send Message
     
    Or read the opinion of Joan Lappin published today at Forbes:

     

    "Sprint's Hesse Underbidding For Clearwire, Still Hopes Shareholders Can Be Duped"
    http://onforb.es/SXIVUW

     

    It's NOT Sprint or nobody at this price. Won't be either when it's done. It might not be Sprint, it won't be a nobody, and it won't be at this price.
    13 Dec 2012, 06:30 PM Reply Like
  • mfreel1657
    , contributor
    Comments (33) | Send Message
     
    What you wish for and what you get might be two different things. I think Hesse has Clearwire by the short and curly's. Should be interesting next couple days.
    13 Dec 2012, 10:22 PM Reply Like
  • petepete8859
    , contributor
    Comments (13) | Send Message
     
    I won't sell my 10,000 shares for any less that $4!
    14 Dec 2012, 02:58 AM Reply Like
  • adamkbice
    , contributor
    Comments (157) | Send Message
     
    The fact that CLWR is currently trading over Sprint's 2.90/share offer is pretty good evidence that most shareholders believe it's a lowball bid.
    14 Dec 2012, 03:11 AM Reply Like
  • gainesview
    , contributor
    Comments (8) | Send Message
     
    Clearwire ,has one ace in the hole I believe.Through the 2nd quarter and a very huge capital partnership. Market cap more than Softbank and more stable. If times get tough they may have Clearwire's back /////////////////////////
    14 Dec 2012, 03:34 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector