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
¨
Filed by a Party other than the Registrant
x
Check the appropriate box:
|
|
|
¨
|
|
Preliminary Proxy Statement
|
|
|
¨
|
|
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
|
|
|
¨
|
|
Definitive Proxy Statement
|
|
|
x
|
|
Definitive Additional Materials
|
|
|
¨
|
|
Soliciting Material Pursuant to § 240.14a-12
|
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)
Payment of
Filing Fee (Check the appropriate box):
|
|
|
|
|
|
|
x
|
|
No fee required.
|
|
|
¨
|
|
Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
|
|
|
|
|
|
(1)
|
|
Title of each class of securities to which transaction applies:
|
|
|
(2)
|
|
Aggregate number of securities to which transaction applies:
|
|
|
(3)
|
|
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):
|
|
|
(4)
|
|
Proposed maximum aggregate value of transaction:
|
|
|
(5)
|
|
Total fee paid:
|
|
|
¨
|
|
Fee paid previously with preliminary materials.
|
|
|
¨
|
|
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.
|
|
|
|
|
|
(1)
|
|
Amount Previously Paid:
|
|
|
(2)
|
|
Form, Schedule or Registration Statement No.:
|
|
|
(3)
|
|
Filing Party:
|
|
|
(4)
|
|
Date Filed:
|
This filing consists of the following documents:
|
|
|
Letter by Crest Financial Limited to the Board of Directors of Clearwire Corporation dated June 3, 2013
|
|
|
|
Letter by Crest Financial Limited to the Board of Directors of Sprint Nextel Corporation dated June 3, 2013
|
|
|
|
Press Release by Crest Financial Limited dated June 3, 2013
|
|
|
|
Press Release by Crest Financial Limited dated June 3, 2013
|
CREST FINANCIAL LIMITED
JPMorgan Chase Tower
600 Travis, Suite 6800
Houston, Texas 77002
June 3, 2013
VIA FEDERAL
EXPRESS AND FACSIMILE
The Board of Directors
c/o John W. Stanton
Chairman
Clearwire Corporation
1475 120th Avenue NE
Bellevue, WA 98005
Ladies and Gentlemen:
As our May 30 letter explained, Crest Financial Limited (
Crest
) urges the Clearwire Board of
Directors (the
Board
) to give genuine consideration to DISH Network Corporations (
DISH
) tender offer for all outstanding shares of Clearwire Corporation (
Clearwire
or the
Company
) for $4.40 per share. DISHs offer is superior in every way to Sprint Nextel Corporations (
Sprint
) latest offer of $3.40 per share. Still, it is only the first step in
unlocking the Companys true value. We write today to reiterate that the path to realizing that true value is an open, competitive bidding process and to describe the course of events that we believe will take place as that bidding process
unfolds.
DISHs tender offer has shifted the battle for Clearwires valuable assets to where it belongsa
competitive bidding process for Clearwire. But for a truly competitive process to take place, the Clearwire Board must appoint a new Special Committee with new, truly independent directors, unmarred by the Clearwire Boards past mistakes. The
prior Special Committee failed to protect all stockholders best interests by acceding to Sprints two low-ball offers, locking the Company into coercive financing and corporate governance terms, and delegating all negotiating authority
away from the Special Committees members to Mr. Stanton, among many other things. The same abdication cannot occur this time around. There are currently two bids on the table for Clearwireone from the controlling stockholder and one
from another bidder. For a fair assessment of each, a fresh independent perspective is required. Moreover, new independent directors will serve as a bulwark against any more attempts at oppression by Sprint. Thus, for Clearwires minority
stockholders to make a truly free choice, you must delegate to the new Special Committee all the powers of the Board, including decisions regarding interim financing and corporate governance arrangements, and Mr. Stanton must give up all
negotiation authority. Then, the new Special Committee must fully consider DISHs offer, while also entertaining competing bids from Sprint, SoftBank, and all other interested parties.
Sprint now faces two options. First, unless Sprint and its current suitor, SoftBank, wish to cohabitate with DISH as joint owners of
Clearwire, they need to counter DISHs tender offer with a real offer that reflects Clearwires full and fair value. That is the only way Sprint and SoftBank could take Clearwire private as they planned and deny DISH a stake in the
Company. We believe, despite SoftBank CEO Masayoshi Sons earlier protestations, that such cohabitation in Clearwire is untenable to both Sprint and SoftBank. If Sprint pursues this option, the reconstituted Clearwire Special Committee should
take all steps necessary to ensure that any further bids from Sprint reflect full value and do not capitalize on the imbedded diversion value that has been indicative of Sprints offers thus far.
Second, if Sprint is unable, or SoftBank is unwilling to permit Sprint, to raise its bid to
top DISHs latest offer (and any future bids), then Sprint can avoid deadlock at Clearwire only by shifting its allegiance away from SoftBank and toward DISH in its own sale process. In this scenario, we believe that DISH will want its
subsidiary Sprint to control 100% of Clearwire. And if this scenario occurs, you must ensure that any offer that DISH puts forward reflects the full value of the Company.
Either case described above provides the Board and the Special Committee with another opportunity to realize the full value of Clearwire for all stockholders. That is why we have urged you to recommend
against Sprints proposed merger, close the polls in the pending stockholder meeting, and, upon the Clearwire stockholders rejection of the Sprint merger, terminate the ill-advised and oppressive merger agreement with Sprint. Such
clearing of the decks would afford a real opportunity for a competitive bidding process for Clearwire.
Of course, there
remains the possibility that DISH and Sprint elect to share governance of Clearwire. If Clearwire remains an independent, public company going forward, the Company can resume the course it charted before Sprints attempted squeeze-out.
DISHs offer, and its clear intent to enter into a commercial arrangement that provides it with access to Clearwires spectrum, kickstarts the profitable multi-customer case strategy (the MCC strategy) that the Board thus far
has claimed to be elusive. This MCC strategy, proposed by Clearwires own management and reviewed by its financial advisers, could push the Companys value as high as $16.76 per share, according to Clearwires own financial advisor,
Evercore Partners. As presented by Clearwires management, the MCC strategy would increase free cash flow and improve the Companys leverage to negotiate higher commercial rates with Sprint, DISH, and any other wholesale customer in the
future. In addition, the Company could resume the common stock offering that it started last year, but then abruptly halted. At Clearwires current share price, such an offering would substantially reduce the dilution of the convertible notes
proposed by Sprint and DISH and generate the necessary capital to fully deploy Clearwires TDD-LTE network. Additionally, the Company could now refinance its existing bonds at more attractive rates, thereby improving cash flow.
For all these favorable alternatives to become available, however, you need to consider properly DISHs tender offer, which is
clearly actionable. Unless and until you fully consider the alternative that DISH has offered, Sprint might continue its pattern of unfair dealing and broker a deal between SoftBank and Sprint to avoid a bidding contest for Clearwire. You must not
allow that to occur. Notwithstanding the Boards previous efforts to provide every advantage to Sprint to the detriment of the Companys other stockholders, the minority stockholders have thus far beaten back Sprints self-interested
attempts to lock up Clearwire on the cheap while selling itself at a premium. It is time that the Clearwire Board fulfills its duty to do the same and obtains a premium for Clearwires stockholders other than Sprint. The newly constituted
Special Committee we are demanding should ensure that we and our fellow stockholders will have the option to act on offers that are superior to Sprints currently inadequate offer, whether that is DISHs tender offer, another offer from
Sprint, or an offer from yet another third party.
As we have said in our correspondence for some time now, the competition
for Clearwire has only just begun, and you have an obligation to make sure it proceeds in a fair and transparent manner. We thus urge you to reconstitute the Special Committee, give full consideration to DISHs tender offer, open the Company to
a competitive bidding process, and prevent Sprint from diverting Clearwires value back to itself.
|
Sincerely yours,
|
|
/s/
David K. Schumacher
|
David K. Schumacher
|
General Counsel
Crest
Financial Limited
|
*************************************************************************************
About 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 definitive proxy statement and the supplement have been mailed to the stockholders of Clearwire. SECURITYHOLDERS OF CLEARWIRE ARE URGED TO READ THE DEFINITIVE
PROXY STATEMENT AND THE SUPPLEMENT, WHICH ARE 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.
CREST FINANCIAL LIMITED
JPMorgan Chase Tower
600 Travis, Suite 6800
Houston, Texas 77002
June 3, 2013
VIA FEDERAL
EXPRESS AND FACSIMILE
The Board of Directors
c/o James H. Hance, Jr.
Chairman
Sprint Nextel Corporation
6200 Sprint Parkway
Overland Park, KS 66251
Ladies and Gentlemen:
Crest Financial Limited (
Crest
) writes as a fellow stockholder in Clearwire Corporation
(
Clearwire
or the
Company
) to address the relationship between the competition for Clearwire and the ongoing battle for Sprint Nextel Corporation (
Sprint
). Sprints
incremental increase of its initial bid to acquire the Clearwire shares that Sprint does not already own and DISH Network Corporations (
DISH
) competing tender offer for all outstanding Clearwire shares confirm what we
and other Clearwire stockholders have said all along: Clearwire is the ultimate prize that Sprint, SoftBank Corp. (
SoftBank
), and DISH desire, and it is worth much more than what Sprint has offered and in turn what SoftBank
has offered for Sprint.
This confirmation that Clearwire is much more valuable than Sprint had claimed should cause you to
either (1) reconsider the price at which you have recommended Sprints sale to SoftBank or (2) abandon your public refusal to sell your Clearwire shares. Doing neither will confirm either that you are violating your fiduciary duties
to Sprints stockholders for failure to realize a fair sale price or that Sprint violated its fiduciary duties to the Clearwire minority shareholders for conducting an unfair squeeze out. At the very least, now that you have initiated the sales
process for Clearwire, you have a fiduciary duty to permit that process to proceed in an open and competitive manner. Thus, you must permit Clearwire to give full consideration to DISHs bid and to repurchase the notes issued to Sprint under
your unfair Note Purchase Agreement, without converting those notes at their dilutive exchange ratio.
As we have repeatedly
said in our public correspondence and have alleged in our lawsuit pending before the Delaware Court of Chancery, Sprints initial bid for Clearwire was grossly inadequate at $2.97 per share. Clearwires minority stockholders agreed and
cast their votes against the proposed Sprint-Clearwire merger. Rather than accept a certain defeat, Sprint forced an adjournment of the vote and acknowledged the inadequacy of its bid by incrementally bumping its offer to $3.40 per share.
DISHs proposed tender offer at $4.40 per share proved that Sprints second attempt to squeeze out Clearwires minority stockholders was still at an inadequate price. A direct, competitive bidding process for Clearwire is underway.
And it is clear that the final purchase price will be much higher than Sprints first or second offer.
We believe that
Sprints goal all along has been to lock up Clearwire on the cheap, while selling itself to SoftBank, or another suitor, at a premium. It is evident that Clearwire is the true prize in this ongoing battle from SoftBanks insistence that it
direct your negotiations with Clearwiregoing so far as to set the offer price and reserving approval
power over any changes. Now that an adequate price for Clearwire has proven to be at least 50% higher than your initial $2.97 per share offer to take Clearwire private, you need to reconsider
your recommendation in favor of Sprints transaction with SoftBank, if you still intend to secure a premium for Sprint. Certainly, that is what Sprints stockholders would expect from a board of directors duty-bound to pursue their best
interests. Indeed, the proxy advisory firm Egan Jones recommended against your proposed transaction with SoftBank because it believes that Sprints stockholders should wait for precisely such revaluation.
To continue recommending in favor of SoftBanks current offer price would admit that you are either breaching your duties to
Sprints stockholders or that Sprint has been breaching its duties to Clearwires stockholders. As we have written copiously, we believe both $2.97 and $3.40 per share to be grossly inadequate offers for Clearwire. And the market has
proven us right. Given the dramatic jump in the bidding process for Clearwire, from $2.97 in the original Sprint-Clearwire merger agreement to $4.40 in the latest DISH bid, all assumptions you might have had as to the true value of the Company have
been definitively challenged. Thus, your duties to Sprints stockholders would seem to require you to demand a commensurate price increase from SoftBank. To argue otherwise, that the SoftBank offer still reflects full value for Sprint, would be
an admission that your earlier offers for Clearwire were a naked attempt at misappropriating Clearwires value to Sprint. The only explanation for not demanding a higher price for Sprint now is that you always knew Clearwire to be worth more
than $4.40 per share, but had already built Clearwires true value (which you intended to divert) into the Sprint-SoftBank transaction price.
There is some slight chance that Sprint was not mendacious but just misguided in dealing with Clearwirethat you believed in good faith that Clearwire is worth no more than $2.97 per share (and now
$3.40 per share). Of course, we think Clearwire is worth much more than even the $4.40 bid from DISH that is currently on the table. But if you legitimately believe your prior offers to have reflected Clearwires true value, it is time for
Sprint to reconsider its stated and dogged refusal to be a seller of Clearwire. DISH has proposed a tender offer for more than you are willing to pay for Clearwire yourself. If the tender offer exceeds your good faith valuation of Clearwires
assets, then you have a fiduciary duty to your own stockholders to sell Sprints Clearwire shares to DISH. If instead you understand that Clearwires value is still much higher than DISHs bidas we believe you dothen you
have an obligation as Clearwires controlling stockholder to present an offer reflecting that higher value. You cannot have it both ways.
At the very least, you have an obligation as Clearwires controlling stockholder to get out of the way so that the process to sell Clearwire can proceed without your hindrance. Sprint has initiated
the sales process for Clearwire, and you now have an obligation not to interfere with the Clearwire board of directors full consideration of DISHs tender offer or other competing bids. It is imperative to the competitive bidding process
for Clearwireand thus critical to the Clearwire stockholders realization of the Companys true valuethat you not fight the DISH tender offers governance conditions, including DISHs proposed Investor Rights
Agreement, or DISHs Note Purchase Agreement. In addition, Clearwire should be permitted to repurchase the notes issued under your coercive Note Purchase Agreement, without you converting the notes and unfairly diluting minority
stockholders stake in the Company, so that a truly fair and competitive bidding process can take place. It is only through such a competitive bidding process that all of Clearwires stockholders can unlock the value of their investment,
and as the Companys controlling stockholder you are duty-bound to permit that process to unfold.
|
Sincerely yours,
|
|
/s/
David K. Schumacher
|
David K. Schumacher
|
General Counsel
Crest
Financial Limited
|
*************************************************************************************
About 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 definitive proxy statement and the supplement have been mailed to the stockholders of Clearwire. SECURITYHOLDERS OF CLEARWIRE ARE URGED TO READ THE DEFINITIVE
PROXY STATEMENT AND THE SUPPLEMENT, WHICH ARE 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.
FOR IMMEDIATE RELEASE:
CONTACT: Jeffrey Birnbaum, (202) 661-6367, JBirnbaum@BGRPR.com
Crest Financial Demands That
Clearwire Board Reconstitute Special Committee and Ensure a Fair and Transparent Bidding Process for Clearwire
Sends letter to Clearwire
Board demanding an open, competitive bidding process and describing the course of events that will take place as that bidding process unfolds
HOUSTON, June 3, 2013 Crest Financial Limited, the largest of the independent minority stockholders of Clearwire Corporation (NASDAQ: CLWR), again urged the Clearwire Board of Directors to
give genuine consideration to DISH Network Corporations $4.40 per share tender offer and to pursue an open, competitive bidding process for Clearwire. Crest also described the options Sprint faces now that the competitive bidding
over Clearwire has begun, and it demanded that the Clearwire Board form a new Special Committee with new independent directors to ensure a fair and transparent bidding process.
In Crests letter to the Clearwire Board, David K. Schumacher, Crests General Counsel, stated: DISHs tender offer has shifted the battle for Clearwires valuable assets to
where it belongsa competitive bidding process for Clearwire. But for a truly competitive process to take place, the Clearwire Board must appoint a new Special Committee with new, truly independent directors, unmarred by the Clearwire
Boards past mistakes. The prior Special Committee failed to protect all stockholders best interests by acceding to Sprints two low-ball offers, locking the Company into coercive financing and corporate governance terms, and
delegating all negotiating authority away from the Special Committees members to Mr. Stanton, among many other things. The same abdication cannot occur this time around.
According to Schumacher: There are currently two bids on the table for Clearwireone from the controlling stockholder and one from another bidder. For a fair assessment of each, a fresh
independent perspective is required. Moreover, new independent directors will serve as a bulwark against any more attempts at oppression by Sprint. Thus, for Clearwires minority stockholders to make a truly free choice, you must delegate to
the new Special Committee all the powers of the Board, including decisions regarding interim financing and corporate governance arrangements, and Mr. Stanton must give up all negotiation authority. Then, the new Special Committee must fully
consider DISHs offer, while also entertaining competing bids from Sprint, SoftBank, and all other interested parties.
Schumacher
added: Sprint now faces two options. First, unless Sprint and its current suitor, SoftBank, wish to cohabitate with DISH as joint owners of Clearwire, they need to counter DISHs tender offer with a real offer that reflects
Clearwires full and fair value. That is the only way Sprint and SoftBank could take Clearwire private as they planned and deny DISH a stake in the Company. We believe, despite SoftBank CEO Masayoshi Sons earlier protestations, that such
cohabitation in Clearwire is untenable to both Sprint and SoftBank. If Sprint pursues this option, the reconstituted Clearwire Special Committee should take all steps necessary to ensure that any further bids from
Sprint reflect full value and do not capitalize on the imbedded diversion value that has been indicative of Sprints offers thus far. Second, if Sprint is unable, or SoftBank is unwilling to
permit Sprint, to raise its bid to top DISHs latest offer (and any future bids), then Sprint can avoid deadlock at Clearwire only by shifting its allegiance away from SoftBank and toward DISH in its own sale process. In this scenario, we
believe that DISH will want its subsidiary Sprint to control 100% of Clearwire. And if this scenario occurs, you must ensure that any offer that DISH puts forward reflects the full value of the Company.
Schumacher noted: Either case described above provides the Board and the Special Committee with another opportunity to realize the full value of
Clearwire for all stockholders. That is why we have urged you to recommend against Sprints proposed merger, close the polls in the pending stockholder meeting, and, upon the Clearwire stockholders rejection of the Sprint merger,
terminate the ill-advised and oppressive merger agreement with Sprint. Such clearing of the decks would afford a real opportunity for a competitive bidding process for Clearwire.
Crests letter continues: Of course, there remains the possibility that DISH and Sprint elect to share governance of Clearwire. If Clearwire remains an independent, public company going
forward, the Company can resume the course it charted before Sprints attempted squeeze-out. DISHs offer, and its clear intent to enter into a commercial arrangement that provides it with access to Clearwires spectrum, kickstarts
the profitable multi-customer case strategy (the MCC strategy) that the Board thus far has claimed to be elusive. This MCC strategy, proposed by Clearwires own management and reviewed by its financial advisers, could push the
Companys value as high as $16.76 per share, according to Clearwires own financial advisor, Evercore Partners. As presented by Clearwires management, the MCC strategy would increase free cash flow and improve the Companys
leverage to negotiate higher commercial rates with Sprint, DISH, and any other wholesale customer in the future. In addition, the Company could resume the common stock offering that it started last year, but then abruptly halted. At Clearwires
current share price, such an offering would substantially reduce the dilution of the convertible notes proposed by Sprint and DISH and generate the necessary capital to fully deploy Clearwires TDD-LTE network. Additionally, the Company could
now refinance its existing bonds at more attractive rates, thereby improving cash flow.
Schumacher further stated: For all these
favorable alternatives to become available, however, you need to consider properly DISHs tender offer, which is clearly actionable. Unless and until you fully consider the alternative that DISH has offered, Sprint might continue its pattern of
unfair dealing and broker a deal between SoftBank and Sprint to avoid a bidding contest for Clearwire. You must not allow that to occur. Notwithstanding the Boards previous efforts to provide every advantage to Sprint to the detriment of the
Companys other stockholders, the minority stockholders have thus far beaten back Sprints self-interested attempts to lock up Clearwire on the cheap while selling itself at a premium. It is time that the Clearwire Board fulfills its duty
to do the same and obtains a premium for Clearwires stockholders other than Sprint. The newly constituted Special Committee we are demanding should ensure that we and our fellow stockholders will have the option to act on offers that are
superior to Sprints currently inadequate offer, whether that is DISHs tender offer, another offer from Sprint, or an offer from yet another third party.
The letter to the Clearwire Board concludes: [T]he competition for Clearwire has only just begun, and you have an obligation to make sure it proceeds in a fair and transparent manner. We thus urge
you to reconstitute the Special Committee, give full consideration to DISHs tender offer, open the Company to a competitive bidding process, and prevent Sprint from diverting Clearwires value back to itself.
D.F. King & Co, Inc. has been retained by Crest to assist it in the solicitation of proxies in
opposition to the proposed Sprint-Clearwire merger. If stockholders have any questions or need assistance in voting the GOLD proxy card, please call D.F. King & Co. at (800) 949-2583. The full letter to the Clearwire Board 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 definitive proxy statement and the supplement have been mailed to the
stockholders of Clearwire. SECURITYHOLDERS OF CLEARWIRE ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND THE SUPPLEMENT, WHICH ARE 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
FOR IMMEDIATE RELEASE:
CONTACT: Jeffrey Birnbaum, (202) 661-6367, JBirnbaum@BGRPR.com
Crest Financial Demands That
Sprint Allow Clearwire to Pursue a Competitive Bidding Process
Sends letter to Sprint Board demanding that Sprint not interfere
with the Clearwire board of directors full consideration of DISHs tender offer and allow a truly fair and competitive bidding process to take place
HOUSTON, June 3, 2013 Crest Financial Limited, the largest of the independent minority stockholders of Clearwire Corporation (NASDAQ: CLWR), sent a letter to Sprint Nextel Corporations
Board of Directors stating that DISH Network Corporations competing tender offer for Clearwire confirms that Clearwire is the ultimate prize in the bidding war over Sprint, and that Clearwire is worth much more than what
Sprint has offered. Crest demanded that Sprint permit Clearwire to give full consideration to DISHs bid and to repurchase the notes issued to Sprint under [Sprints] unfair Note Purchase Agreement, without converting those
notes at their dilutive exchange ratio.
The letter from David K. Schumacher, Crests General Counsel, begins: As we have
repeatedly said in our public correspondence and have alleged in our lawsuit pending before the Delaware Court of Chancery, Sprints initial bid for Clearwire was grossly inadequate at $2.97 per share. Clearwires minority stockholders
agreed and cast their votes against the proposed Sprint-Clearwire merger. Rather than accept a certain defeat, Sprint forced an adjournment of the vote and acknowledged the inadequacy of its bid by incrementally bumping its offer to $3.40 per share.
DISHs proposed tender offer at $4.40 per share proved that Sprints second attempt to squeeze out Clearwires minority stockholders was still at an inadequate price. A direct, competitive bidding process for Clearwire is underway.
And it is clear that the final purchase price will be much higher than Sprints first or second offer.
Schumacher continues:
We believe that Sprints goal all along has been to lock up Clearwire on the cheap, while selling itself to SoftBank, or another suitor, at a premium. It is evident that Clearwire is the true prize in this ongoing battle from
SoftBanks insistence that it direct your negotiations with Clearwiregoing so far as to set the offer price and reserving approval power over any changes. Now that an adequate price for Clearwire has proven to be at least 50% higher than
your initial $2.97 per share offer to take Clearwire private, you need to reconsider your recommendation in favor of Sprints transaction with SoftBank, if you still intend to secure a premium for Sprint. Certainly, that is what Sprints
stockholders would expect from a board of directors duty-bound to pursue their best interests. Indeed, the proxy advisory firm Egan Jones recommended against your proposed transaction with SoftBank because it believes that Sprints stockholders
should wait for precisely such revaluation.
Schumacher notes: To continue recommending in favor of SoftBanks current offer
price would admit that you are either breaching your duties to Sprints stockholders or that Sprint has been breaching its duties to Clearwires stockholders. As we have written copiously, we believe both $2.97 and $3.40 per share to be
grossly inadequate offers for Clearwire. And the market has proven us right. Given the dramatic jump in the bidding process for Clearwire, from $2.97 in the original Sprint-Clearwire
merger agreement to $4.40 in the latest DISH bid, all assumptions you might have had as to the true value of the Company have been definitively challenged. Thus, your duties to Sprints
stockholders would seem to require you to demand a commensurate price increase from SoftBank. To argue otherwise, that the SoftBank offer still reflects full value for Sprint, would be an admission that your earlier offers for Clearwire were a naked
attempt at misappropriating Clearwires value to Sprint. The only explanation for not demanding a higher price for Sprint now is that you always knew Clearwire to be worth more than $4.40 per share, but had already built Clearwires true
value (which you intended to divert) into the Sprint-SoftBank transaction price.
Schumachers letter also states: There is
some slight chance that Sprint was not mendacious but just misguided in dealing with Clearwirethat you believed in good faith that Clearwire is worth no more than $2.97 per share (and now $3.40 per share). Of course, we think Clearwire is
worth much more than even the $4.40 bid from DISH that is currently on the table. But if you legitimately believe your prior offers to have reflected Clearwires true value, it is time for Sprint to reconsider its stated and dogged refusal to
be a seller of Clearwire. DISH has proposed a tender offer for more than you are willing to pay for Clearwire yourself. If the tender offer exceeds your good faith valuation of Clearwires assets, then you have a fiduciary duty to your own
stockholders to sell Sprints Clearwire shares to DISH. If instead you understand that Clearwires value is still much higher than DISHs bidas we believe you dothen you have an obligation as Clearwires controlling
stockholder to present an offer reflecting that higher value. You cannot have it both ways.
The letter to the Sprint Board concludes:
At the very least, you have an obligation as Clearwires controlling stockholder to get out of the way so that the process to sell Clearwire can proceed without your hindrance. Sprint has initiated the sales process for Clearwire, and you
now have an obligation not to interfere with the Clearwire board of directors full consideration of DISHs tender offer or other competing bids. It is imperative to the competitive bidding process for Clearwireand thus critical to
the Clearwire stockholders realization of the Companys true valuethat you not fight the DISH tender offers governance conditions, including DISHs proposed Investor Rights Agreement, or DISHs Note Purchase
Agreement. In addition, Clearwire should be permitted to repurchase the notes issued under your coercive Note Purchase Agreement, without you converting the notes and unfairly diluting minority stockholders stake in the Company, so that a
truly fair and competitive bidding process can take place. It is only through such a competitive bidding process that all of Clearwires stockholders can unlock the value of their investment, and as the Companys controlling stockholder
you are duty-bound to permit that process to unfold.
D.F. King & Co, Inc. has been retained by Crest to assist it in the
solicitation of proxies in opposition to the proposed Sprint-Clearwire merger. If stockholders have any questions or need assistance in voting the GOLD proxy card, please call D.F. King & Co. at (800) 949-2583. The full letter to the
Sprint Board 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 definitive proxy statement and the supplement have been mailed to the stockholders of
Clearwire. SECURITYHOLDERS OF CLEARWIRE ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT AND THE SUPPLEMENT, WHICH ARE 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
Clearwire Corp. - Class A (MM) (NASDAQ:CLWR)
Historical Stock Chart
From Jun 2024 to Jul 2024
Clearwire Corp. - Class A (MM) (NASDAQ:CLWR)
Historical Stock Chart
From Jul 2023 to Jul 2024