Institutional Shareholder Services and Glass Lewis issued opposing...
Institutional Shareholder Services and Glass Lewis issued opposing evaluations of Sprint Nextel’s bid to take full control of Clearwire ahead of the planned May 21 shareholder vote. Sprint has offered $2.97 per share for the Clearwire stock it doesn’t own,…
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for an estimated total of $2.2 billion. ISS backed Sprint’s offer, saying it’s fair and that Clearwire is becoming “increasingly unviable on a stand-alone basis.” ISS also said that since Sprint already owns a majority of Clearwire, it has effective veto power over other bids. Glass Lewis opposed Sprint’s bid, claiming the carrier hadn’t convinced the proxy advisory firm it was Clearwire’s best option. While Clearwire “is in need of a significant capital injection and its stand-alone operating potential is heavily dependent on its ability to execute additional strategic transactions, including spectrum sales and debt or equity financings, it does not appear, in our view, that the board fully explored all available alternatives,” Glass Lewis said. Sprint said it’s pleased with the ISS recommendation, saying Clearwire’s board and special committee unanimously endorsed the carrier’s bid (http://bit.ly/10AJ8SN).