UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF THE
SECURITIES EXCHANGE ACT OF 1934
Filed by the Registrant
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Filed by a Party other than the Registrant
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Preliminary Proxy Statement
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Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
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Definitive Proxy Statement
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Definitive Additional Materials
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Soliciting Material Pursuant to § 240.14a-12
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Clearwire Corporation
(Name of Registrant as Specified in Its Charter)
Crest Financial
Limited
Crest Investment Company
(Name of Person(s) Filing Proxy Statement, if Other Than the Registrant)
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Filing Fee (Check the appropriate box):
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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Title of each class of securities to which transaction applies:
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Aggregate number of securities to which transaction applies:
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Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
filing fee is calculated and state how it was determined):
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Proposed maximum aggregate value of transaction:
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Total fee paid:
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Fee paid previously with preliminary materials.
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Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify
the previous filing by registration statement number, or the Form or Schedule and the date of its filing.
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(1)
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Amount Previously Paid:
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Form, Schedule or Registration Statement No.:
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Filing Party:
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Date Filed:
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This filing consists of the following documents:
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Letter by Crest Financial Limited to the stockholders of Clearwire dated as of May 28, 2013
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Press Release by Crest Financial Limited dated as of May 28, 2013
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CREST FINANCIAL LIMITED
JPMorgan Chase Tower
600 Travis, Suite 6800
Houston, Texas 77002
May 28, 2013
Dear Fellow
Clearwire Stockholders:
We, the true minority stockholders of Clearwire Corporation (
Clearwire
),
must continue to oppose the merger between Sprint Nextel Corporation (
Sprint
) and Clearwire. Crest Financial Limited (
Crest
) believes that Sprints incremental offer of $3.40 per share is
still grossly inadequate and that the merger still unfairly disadvantages minority stockholders. More important, we believe Sprints latest offer makes clear that Clearwire is the ultimate prize, and Sprints tactic is to lock it up for
cheap prior to the conclusion of the ongoing bidding contest for Sprint. Clearwire therefore should remain free and clear until the battle for Sprint is settled. At that time, Clearwire will be able to pursue a competitive process that protects
minority stockholders and unlocks the true value of Clearwire for all stockholders, not just Sprint and its suitors.
We say
true minority stockholders above because, as you know, Clearwire has stacked the deck in favor of Sprint by including as minority stockholders a group holding 13% of the outstanding shares that irrevocably obligated
themselves to support Sprint even at the $2.97 per share price. These shares are pledged to support Sprint regardless of the alternatives available and regardless of whether Clearwires Board recommends supporting Sprints offer. And
Sprint is obligated to purchase these shares for the merger considerationafter they have been counted as the minorityif the vote fails and the Sprint-SoftBank merger or an alternative transaction is consummated. That means
only one thing: for all intents and purposes these are Sprint shares and their votes should not be counted as minority approval. We have filed suit to challenge Sprints naked interference with stockholder democracy. The presiding judge has
indicated that, in the Courts eventual review of the transactions fairness, the inclusion of these shares in the minority vote count may compromise any benefit Clearwire and Sprint would assert from the vote. We are evaluating all
options to provide you with better clarity about who is truly eligible to be counted as non-Sprint stockholders. Sprint must not be allowed to have its cake and eat it too.
Of course there is a way forward: We true minority stockholders can reject the current Sprint offer, and the Clearwire Board can allow competitive bidding for Clearwire to begin. SoftBanks CEO
Masayoshi Son has suggested publicly that even if we prevail, SoftBank will be happy because Sprint would own 65 percent of Clearwire. According to Son, that will be good enough for him because Clearwire would be
prohibited to have any sales of frequency to outsiders and so on. But Masayoshi Son is wrong. Sprint will grab the additional 13% of shares from Intel, Comcast, and Bright House Networks (BHN) only if Sprint actually consummates
the Sprint-SoftBank merger or alternative transaction. And we believe that if Sprints bid for Clearwire is rejected, neither a Sprint-SoftBank nor Sprint-DISH transaction will ever actually materialize. In that event, Intel, Comcast, and BHN
would be free to maintain their collective 13% of the minority shares in an independent Clearwire. These 13% stockholders, after all, are the same stockholders who made significant investments in Clearwire as parties to the Equityholders
Agreement even before the Companys value became clear. Now that the Companys value is clear, it stands to reason that they would support pursuing value through an independent Clearwire once Sprints gambit to divert Clearwires
value to itself is up. In the end, once the battle for
control of Sprint is resolved, Sprint could end up exactly where it is todaywith at most 50.2% ownership of Clearwireand Intel, Comcast, and BHN could retain their rights under the
Equityholders Agreement and an independent Clearwire could pursue value for all stockholders, not just Sprint.
In all
events, we want to emphasize another reason you should oppose the merger: Any vote in favor of the merger agreement would limit your range of options to recover the fair value of your shares if Sprint succeeds in its unfair bid for Clearwire.
Delaware law states that only Clearwire stockholders who vote AGAINST the Sprint-Clearwire merger or ABSTAIN can elect to exercise their appraisal rights. Crest has already taken all necessary steps to perfect its appraisal rights under Delaware
law. This means that, instead of pursuing damages for breaches of fiduciary duty by Sprint and the Clearwire Board through a class action or individual action, Crest can ask the Delaware Court of Chancery to determine the fair value of its Clearwire
common stock if the Sprint-Clearwire merger is consummated and certain other conditions are satisfied. But appraisal rights are by definition individual rights. You must perfect your own appraisal rights and cannot vote in favor of the merger if you
are to carry on the fight for fair value in an appraisal proceeding.
Crest and other stockholders who believe that the merger
consideration is inadequate have options for judicial relief, including: (a) appraisal, which is an individual action seeking a fair value determination for only the complaining stockholder (
i.e.
, any relief would not be available to a
class of stockholders); (b) individual lawsuits seeking damages and other relief for breaches of fiduciary duty by Sprint and the Clearwire Board for only the complaining stockholder (as Aurelius Capital Management LP has filed); and (c) a
class action lawsuit seeking damages and other relief for breaches of fiduciary duty by Sprint and the Clearwire Board (as several stockholders, including Crest, have filed). As the ongoing battle for Clearwires future proceeds, Crest
continues to weigh all litigation options, including an appraisal proceeding or an individual action.
Crest encourages
Clearwires other true minority stockholders to oppose the merger and to act now to perfect their rights to pursue fair treatment through all available avenues, including an appraisal proceeding.
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Sincerely yours,
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/s/
David K. Schumacher
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David K. Schumacher
General
Counsel
Crest Financial Limited
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*************************************************************************************
About Crest Financial Limited
Crest
Financial Limited (
Crest
) is a limited partnership under the laws of the State of Texas. Its principal business is investing in securities.
Important Legal Information
In connection with the proposed merger of Clearwire
Corporation (
Clearwire
) with Sprint Nextel Corporation (the
Proposed Sprint Merger
), Crest and other persons (the
Participants
) have filed a supplement to its definitive proxy statement with
the U.S. Securities and Exchange Commission (
SEC
). The supplement was mailed to the stockholders of Clearwire on or around May 24, 2013. SECURITYHOLDERS OF CLEARWIRE ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND THE
SUPPLEMENT, WHICH IS AVAILABLE
2
NOW, AND THE PARTICIPANTS OTHER PROXY MATERIALS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL INFORMATION RELATED TO THE
PARTICIPANTS, CLEARWIRE AND THE PROPOSED SPRINT MERGER. The definitive proxy statement, the supplement and all other proxy materials filed with the SEC are available at no charge on the SECs website at
http://www.sec.gov
. In addition,
the definitive proxy statement and the supplement are also available at no charge on the website of the Participants proxy solicitor at
http://www.dfking.com/clwr
.
Forward-looking Statements
Certain statements contained herein are forward-looking
statements including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements because, by their nature, they are subject to known and
unknown risks and uncertainties. Forward-looking statements are not guarantees of future activities and are subject to many risks and uncertainties. Due to such risks and uncertainties, actual events may differ materially from those
reflected or contemplated in such forward-looking statements. Forward-looking statements can be identified by the use of the future tense or other forward-looking words such as believe, expect, anticipate,
intend, plan, should, may, will, believes, continue, strategy, position or the negative of those terms or other variations of them or by comparable
terminology.
3
FOR IMMEDIATE RELEASE:
CONTACT: Jeffrey Birnbaum, (202) 661-6367, JBirnbaum@BGRPR.com
Crest Financial Urges
True Minority of Clearwire Stockholders to Oppose New Sprint Offer and Preserve Rights to Seek Fair Treatment in Court
Sends letter to Clearwire stockholders urging them to reject Sprints new offer and preserve rights to seek an appraisal under Delaware law
HOUSTON, May 28, 2013 Crest Financial Limited, the largest of the independent minority stockholders of Clearwire
Corporation (NASDAQ: CLWR), today urged Clearwires true minority stockholders to oppose Sprints new offer and to take the steps necessary to preserve their rights.
In a letter to stockholders, David K. Schumacher, Crests General Counsel, said Crest refers to true minority stockholders because Clearwire has stacked the deck in favor of Sprint
by including as minority stockholders a group holding 13% of the outstanding shares that irrevocably obligated themselves to support Sprint even at the $2.97 per share price. These shares are pledged to support Sprint regardless of the
alternatives available and regardless of whether Clearwires Board recommends supporting Sprints offer. And Sprint is obligated to purchase these shares for the merger considerationafter they have been counted as the
minorityif the vote fails and the Sprint-SoftBank merger or an alternative transaction is consummated. That means only one thing: for all intents and purposes these are Sprint shares and their votes should not be counted as
minority approval. We have filed suit to challenge Sprints naked interference with stockholder democracy. The presiding judge has indicated that, in the Courts eventual review of the transactions fairness, the inclusion of these
shares in the minority vote count may compromise any benefit Clearwire and Sprint would assert from the vote. We are evaluating all options to provide you with better clarity about who is truly eligible to be counted as non-Sprint stockholders.
Sprint must not be allowed to have its cake and eat it too.
Schumacher said: Of course there is a way forward: We true minority
stockholders can reject the current Sprint offer, and the Clearwire Board can allow competitive bidding for Clearwire to begin. SoftBanks CEO Masayoshi Son has suggested publicly that even if we prevail, SoftBank will be happy
because Sprint would own 65 percent of Clearwire. According to Son, that will be good enough for him because Clearwire would be prohibited to have any sales of frequency to outsiders and so on. But Masayoshi Son is wrong.
Sprint will grab the additional 13% of shares from Intel, Comcast, and Bright House Networks (BHN) only if Sprint actually consummates the Sprint-SoftBank merger or alternative transaction. And we believe that if Sprints bid for
Clearwire is rejected, neither a Sprint-SoftBank nor Sprint-DISH transaction will ever actually materialize. In that event, Intel, Comcast, and BHN would be free to maintain their collective 13% of the minority shares in an independent Clearwire.
These 13%
stockholders, after all, are the same stockholders who made significant investments in Clearwire as parties to the Equityholders Agreement even before the Companys value became clear.
Now that the Companys value is clear, it stands to reason that they would support pursuing value through an independent Clearwire once Sprints gambit to divert Clearwires value to itself is up. In the end, once the battle for
control of Sprint is resolved, Sprint could end up exactly where it is todaywith at most 50.2% ownership of Clearwireand Intel, Comcast, and BHN could retain their rights under the Equityholders Agreement and an independent
Clearwire could pursue value for all stockholders, not just Sprint.
Schumacher also said any vote in favor of the merger agreement
would limit minority stockholders range of options to recover the fair value of shares if Sprint succeeds in its unfair bid for Clearwire. According to Schumacher, Any vote in favor of the merger agreement would limit your range of
options to recover the fair value of your shares if Sprint succeeds in its unfair bid for Clearwire. Delaware law states that only Clearwire stockholders who vote AGAINST the Sprint-Clearwire merger or ABSTAIN can elect to exercise their appraisal
rights. Crest has already taken all necessary steps to perfect its appraisal rights under Delaware law. This means that, instead of pursuing damages for breaches of fiduciary duty by Sprint and the Clearwire Board through a class action or
individual action, Crest can ask the Delaware Court of Chancery to determine the fair value of its Clearwire common stock if the Sprint-Clearwire merger is consummated and certain other conditions are satisfied. But appraisal rights are by
definition individual rights. You must perfect your own appraisal rights and cannot vote in favor of the merger if you are to carry on the fight for fair value in an appraisal proceeding.
Schumacher added: Crest and other stockholders who believe that the merger consideration is inadequate have options for judicial relief, including:
(a) appraisal, which is an individual action seeking a fair value determination for only the complaining stockholder (
i.e.
, any relief would not be available to a class of stockholders); (b) individual lawsuits seeking damages and
other relief for breaches of fiduciary duty by Sprint and the Clearwire Board for only the complaining stockholder (as Aurelius Capital Management LP has filed); and (c) a class action lawsuit seeking damages and other relief for breaches of
fiduciary duty by Sprint and the Clearwire Board (as several stockholders, including Crest, have filed). As the ongoing battle for Clearwires future proceeds, Crest continues to weigh all litigation options, including an appraisal proceeding
or an individual action.
Schumacher concluded: Crest encourages Clearwires other true minority stockholders to oppose the
merger and to act now to perfect their rights to pursue fair treatment through all available avenues, including an appraisal proceeding.
D.F. King & Co, Inc. has been retained by Crest to assist it in the solicitation of proxies in opposition to the merger. If stockholder have any
questions or need assistance in voting the GOLD proxy card, please call D.F. King & Co. at (800) 949-2583. The full letters to the Clearwire Board and the letter to the Clearwire stockholders can be found at http://www.dfking.com/clwr
or http://www.bancroftpllc.com/crest.
About Crest Financial Limited
Crest Financial Limited (
Crest
) is a limited partnership under the laws of the State of Texas. Its principal business is investing in securities.
Important Legal Information
In
connection with the proposed merger of Clearwire Corporation (
Clearwire
) with Sprint Nextel Corporation (the
Proposed Sprint Merger
), Crest and other persons (the
Participants
) have filed a
supplement to its definitive proxy statement with the U.S. Securities and Exchange Commission (
SEC
). The supplement was mailed to the stockholders of Clearwire on or around May 24, 2013. SECURITYHOLDERS OF CLEARWIRE ARE URGED
TO READ THE DEFINITIVE PROXY STATEMENT AND THE SUPPLEMENT, WHICH IS AVAILABLE NOW, AND THE PARTICIPANTS OTHER PROXY MATERIALS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE, BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING ADDITIONAL
INFORMATION RELATED TO THE PARTICIPANTS, CLEARWIRE AND THE PROPOSED SPRINT MERGER. The definitive proxy statement, the supplement and all other proxy materials filed with the SEC are available at no charge on the SECs website at
http://www.sec.gov
. In addition, the definitive proxy statement and the supplement are also available at no charge on the website of the Participants proxy solicitor at
http://www.dfking.com/clwr
.
Forward-looking Statements
Certain
statements contained herein are forward-looking statements including, but not limited to, statements that are predications of or indicate future events, trends, plans or objectives. Undue reliance should not be placed on such statements
because, by their nature, they are subject to known and unknown risks and uncertainties. Forward-looking statements are not guarantees of future activities and are subject to many risks and uncertainties. Due to such risks and
uncertainties, actual events may differ materially from those reflected or contemplated in such forward-looking statements. Forward-looking statements can be identified by the use of the future tense or other forward-looking words such as
believe, expect, anticipate, intend, plan, should, may, will, believes, continue, strategy, position or the
negative of those terms or other variations of them or by comparable terminology.
SOURCE: Crest Financial Limited
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