By Melodie Warner
Clearwire Corp. (CLWR) reiterated Monday that its proposed
transaction with Sprint Nextel Corp. (S) provides the best option
for Clearwire's minority shareholders amid a push by an investor
group to seek a higher bid.
Sprint had agreed in December to buy the half of Clearwire it
doesn't already own in a $2.2 billion deal, but
satellite-television company Dish Network Corp. (DISH) made an
offer in January that valued all of Clearwire at about $4.85
billion. Dish has since offered $25.5 billion for the entirety of
Sprint, putting the wireless carrier's Clearwire bid in
question.
On Friday, Mount Kellett Capital Management, Highside Capital
Management, Glenview Capital Management and Chesapeake Partners
Management--four shareholders who collectively hold about 18.2% of
the non-Sprint Clearwire shares outstanding--said they intended to
act as a group in beginning discussions with Sprint and other
interested parties, including Dish, about the Clearwire deal.
The group has said Sprint's offer is too low and they have
retained legal counsel to assist in any negotiations.
Clearwire said Monday Sprint's $2.60-a-share offer reflected a
40% premium to the closing price the day before it was received and
it offers a "higher certainty of value for stockholders compared to
other alternatives."
Clearwire also said Comcast Corp. (CMCSA, CMCSK), Intel Corp.
(INTC) and Bright House Networks--who collectively hold roughly 26%
of non-Sprint voting shares--have committed to vote in favor of
Sprint transaction.
Clearwire again said it board unanimously recommends shareholder
vote for the proposed transaction with Sprint at the meeting
scheduled for May 21.
Write to Melodie Warner at melodie.warner@dowjones.com
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