--SoftBank CEO says Sprint wouldn't allow Clearwire board to
consider bankruptcy
--Sprint would continue funding Clearwire even if shareholder
vote fails, SoftBank CEO says
--Sprint "has not made any decision," spokesman says
SoftBank Corp. (9984.TO) Chief Executive Masayoshi Son said
Sprint Nextel Corp. (S) likely would continue to fund Clearwire
Corp. (CLWR), even if Clearwire shareholders reject Sprint's
takeover proposal.
Japan's SoftBank agreed in October to pay $20.1 billion to buy
70% of Sprint, which has agreed to buy the portion of Clearwire
that it doesn't already own. Numerous shareholders are opposing
Sprint's takeover of Clearwire, shares of which continue to trade
above the deal's offer price of $2.97 each. Clearwire shareholders
will vote May 21 on the agreement.
In an interview Thursday, Mr. Son reiterated his confidence in
Sprint's ability to control Clearwire and its board if the deal
fails. Based on previous agreements, Sprint's Clearwire stake will
rise to more than 67%, whether or not Clearwire shareholders
approve the deal.
Clearwire's board has backed the Sprint bid, warning that its
failure could cause Clearwire to file for bankruptcy because it may
not be able to secure enough funding to continue a needed network
overhaul. Sprint has been providing funding to Clearwire in recent
months, but that financing requirement expires if the takeover is
voted down.
Mr. Son said he wouldn't expect Sprint to allow Clearwire's
board to consider bankruptcy and that Sprint would continue to
finance Clearwire after a negative vote. Sprint shareholders vote
on the SoftBank pact on June 12.
"We will make sure they have proper funding," he said.
Dish Network Corp. (DISH), which initially had made an offer for
Clearwire, last month bid $25.5 billion for Sprint. The offer has
launched a war of words between Mr. Son and Dish Chairman Charlie
Ergen over their respective bids for Sprint.
In a regulatory filing Thursday, Dish disclosed that it owns
debt in Clearwire valued around $950 million at the end of March.
That debt position may give Dish a claim on assets if Clearwire
declared bankruptcy.
"If it goes bankrupt, then there is one guy waiting for them in
bankruptcy," Mr. Son said. "You don't want to go into that
route."
A Clearwire spokeswoman declined to comment.
When asked about Mr. Son's comments on Sprint's potential
decisions around Clearwire, a Sprint spokesman said its board will
determine what actions, if any, to take and will make any decisions
public at the appropriate time.
"Sprint's Board has not made any decision or taken a position on
this issue," he said in a statement. "We don't comment on
hypothetical situations."
Write to Thomas Gryta at thomas.gryta@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires