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Clearwire Shareholders Unhappy with Sprint Nextel Takeover
Published on:
Nearly a third of the minority shareholders in USA based Clearwire are unhappy with the takeover offer from Sprint Nextel and are holding out for a higher offer from the company. Their cause has been boosted by the higher offer from rival Dish Network, although some of the details of that bid are contested.
Sprint Nextel already owns just over 50% of the voting shares in Clearwire and offered to buy out the remaining shareholders for US$2.2 billion last month.
Investors holding roughly 29% of Clearwire's remaining shares have told the Reuters news agency that they might vote against the deal as they feel the offer from Sprint is not high enough. However, their stake in the company is not enough to block the deal on their own.
Crest Financial, which owns about 8 percent of Clearwire's minority shares has already sued to block the deal.
Sprint Nextel launched the bid to buy out the remaining shareholders after it acepted a takeover bid from Japan's Sotftbank, which will see the Japanese firm own 70% of Sprint - if approved, and indirectly, end up with 70% of Clearwire as well.
Clearwire is unlikely to be able to remain as a stand-alone company for much longer as it has high network investment commitments and is heavily dependent on wholesale revenues from Sprint customers.
On the web: Reuters
Updated 23rd Jan: Corrected shareholder reference to 29% of the minority shareholders.
Tags: [clearwire] [dish network] [sprint nextel]
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