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Clearwire Corporation (CLWRD) Message Board

  • bankivd bankivd Oct 17, 2012 3:03 AM Flag

    sprint has the right to acquire an additional 77,413,434 shares ... from 2011 balance sheet

    2011 balance sheet ............... Sprint held 627,945,914 shares of Class B Common Stock, representing approximately 48.6% of the voting power of Clearwire................. sprint has the right to acquire an additional 77,413,434 shares of Class B Common Stock for the par value of approximately $8,000, which would increase their voting power by an additional 2.9%. Which would give them over 51% voting right ... if they want to !!! understanding is ..this means SB thru sprint can have 51% voting rites anytime.
    Sprint/SB can own over 51% stake in CLWR with $ 8,000 ... they have the voting rights and they already have 52% economic rights ... since they also own class B units too.

    Then my question here would be --- Why did the price shoot up last week ? What investors/traders were expecting to be the outcome ? As SB/S did not need to buy over 51% ( 51% min. requirement to control board and decision making on sale of spectrum etc. ) and there was no point in doing so either ..... ??

    Anyone ??

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    • Their Class B shares are a non-controling shares. CLWR has stated in the past that it can sell off spectrum WITHOUT sprint approval. that is what makes this such a conundrum. Sprint gets #$%$ because they have backed with billions and yet can't control CLWR, and CLWR needs Sprint for financial backing. CLWR can threaten bankruptcy last December and FORCED SPRINT to give them more money by threatening default, knowing that if in BANKRUPTCY their class B shares are meaningless behind BONDHOLDERS. that is why DISH bought bonds.
      It's a cat and mouse game....but eventually Sprint will buy CLWR. TILL THEN, Hold a core, trade a position.

    • Buying CLWR Control for JUST $8K should be a no brainer, so why aren't they? A lower CLWR price delutes S balence sheet. Pumping it up improves the S balence sheet AND the price making the takeover deal for SoftBank less sweet. Competitors won't buy CLWR, BUT institutions should BUY BUY CLWR which now has S and SoftBank Cash as growth capital

    • they need to control 100% of the company to sell off assets not 51% it that were true corp america would bye 51% of all competitors and sell off assets

      Sentiment: Strong Buy

    • In 2008 with the XOHM and CLWR merger S had 54%majority and 7 members on the 13 member board.In 2010 three members quit .One was HESSE.They said anti-trust issues over this but who knows.They reserved the right to fill those whenever.With the issue of CLWR stock the % went to 49.Dont know for sure if they filled those seats but with SB they sure will.No need to spend money on buying CLWR stock..they have the majority on the CLWR board.correct me if i am wrong

      • 1 Reply to delschwartz
      • They would still need atleast 51% control over the board to stop/avoid any unwanted sale of spectrum and attaining that 51% aint a big thing as per the note I posted above { worth $ 8,000 only).

        But at the same time S/SB can not afford to let CLWR die or crash to low value. Weather SB likes it or not they already own big chunk of CLWR .

        Total 20 Billion investment in Sprint from SB for 70% stake and Sprint already owns 48% CLWR.This is an indirect owning of CLWR thru S. Consider this as a mathematical equation for a second :

        20 B of SB = 0.7 S
        Since 0.7 X .48 CLWR is a subset of S which must = .336 CLWR ( .7 X .48)

        that means 20 B of SB = .7 S + .336 CLWR ( which is a subset of S )

        Simple math kinda tells us SB already owns .336 % of CLWR which is Approx. $ 1.12 Billion as per todays closing.But in reality which is worth way more !! If CLWR goes down not only CLWR is at loss but so is S and SB.

        Sentiment: Buy

    • If what you say is true, then i think we're toast.