Crest Financial, Clearwire’s largest minority shareholder, filed a...
Crest Financial, Clearwire’s largest minority shareholder, filed a preliminary proxy statement Wednesday at the SEC in which it urged Clearwire shareholders to vote against Sprint Nextel’s proposed buyout of Clearwire. Sprint wants to purchase the remaining 49 percent Clearwire stake…
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it doesn’t already own for $2.2 billion. Crest has previously declared its opposition to the deal on grounds that it undervalues Clearwire’s spectrum assets. Crest has also filed a petition with the FCC to deny Sprint’s Clearwire deal and SoftBank’s proposal to buy 70 percent ownership of Sprint, arguing that both deals run counter to the public interest. Crest said in the proxy it believes “it would be better for Clearwire to remain a stand-alone company, while examining opportunities to consummate alternative transactions, rather than accept” Sprint’s bid. Clearwire said it also continues to examine a competing bid by Dish Network, though it has accepted $160 million in debt financing from Sprint since the beginning of the year. Sprint’s proposed Clearwire deal included an offer of $800 million in financing over 10 months. Crest is attempting to stop Clearwire’s use of Sprint financing by offering $240 million in financing of its own, which it believes “would also provide Clearwire’s board with more time to consider the proposed merger with Sprint.” A Sprint spokesman said his company had no comment.