Some Clearwire Corp. (CLWR) shareholders have formed a group
with the aim of getting a higher buyout price for the mobile
broadband provider than the one currently in place from Sprint
Nextel Corp. (S).
In December, Clearwire's majority owner, Sprint, offered to buy
the rest of Clearwire that it doesn't own for $2.2 billion, or
$2.97 a share. The next month, satellite TV company Dish Network
Corp. (DISH) bid $3.30 a share, and Clearwire shares have traded
well above the Sprint offer since. Dish since has bid for the
entirety of Sprint, putting its Clearwire bid in question.
In a regulatory filing Friday, the four shareholders--Mount
Kellett Capital Management, Highside Capital Management, Glenview
Capital Management and Chesapeake Partners Management--said they
hold a collective 127.4 million shares, or about 18.2% of the
non-Sprint shares outstanding. They intend to act as a group in
beginning discussions with Sprint and other interested parties,
including Dish, about the deal.
Spokespeople from Clearwire, Sprint and Dish declined to
comment. Clearwire shareholders are set to vote May 21 on the
deal.
The filing said the group members "unanimously believe that such
price offered by Sprint is too low" and they have retained legal
counsel to assist in any negotiations. The group members have
agreed not to sell or transfer their shares before May 22, when the
pact will end unless members holding a majority of the group shares
decide to end it earlier.
Sprint owns more than 50% of Clearwire and needs a majority of
other shareholders to back the deal, but the group joins other
funds that are opposing the deal.
Crest Financial and Aurelius Capital Management are separately
suing to block the deal, and Crest has plans to launch a proxy
fight against the shareholder vote.
Sprint, which has agreed to sell a 70% stake to Japan's SoftBank
Corp. (9984.TO), has expressed confidence in closing the Clearwire
deal by July 1. Clearwire's board has continued to support the
Sprint agreement.
Earlier this week, SoftBank Chief Executive Masayoshi Son said
he doesn't see a need for a higher bid because Sprint will have
control over Clearwire and its board even if the shareholder vote
fails.
Write to Thomas Gryta at thomas.gryta@dowjones.com
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