By Anna Prior
Proxy advisory firm Institutional Shareholder Services Inc. has
recommended Clearwire Corp. (CLWR) shareholders vote for the
takeover offer from Sprint Nextel Corp. (S), saying in a report
that the bid "falls within an appropriate valuation range."
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.
ISS said the Sprint merger consideration represents a
substantial premium over where Clearwire shares were trading before
the initial rumors of the deal circulated, adding Clearwire's
business is "increasingly unviable on a stand-alone basis."
Earlier this month, 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.
A representative for Mount Kellett didn't immediately respond to
a request for comment.
On Monday, Clearwire reiterated its support of the deal, saying
the proposed transaction with Sprint provides the best option for
Clearwire's minority shareholders. The company 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 the Sprint deal.
Clearwire class A shares fell 1.2% to $3.23 in recent light
premarket trading. The stock is up 13% since the start of the year,
and has surged in the past 12 months.
Write to Anna Prior at anna.prior@dowjones.com
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