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Clearwire Corporation (CLWRD) Message Board

  • lbtoolman13 lbtoolman13 Feb 26, 2013 10:33 PM Flag

    Is the BS new real or popagnada?

    Clwr to tap S financing

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    • Very real. Announced on CNBC this morning at 8:15.

    • It would be nice if somebody could post it. One may have to question WSJ's credibility and their motivation since they did a number on Tesla a few weeks back. Tomorrow will be an interesting day for sure. The shorts are probably salivating on this news.

      • 1 Reply to venture2fun
      • By SHARON TERLEP And JOANN S. LUBLIN

        Clearwire Corp. CLWR +1.91% plans to tap financing made available by Sprint Nextel Corp., S +0.87% people familiar with the situation said Tuesday, in a move that further complicates Dish Network Corp.'s DISH +0.83% effort to buy the wireless broadband operator.

        Dish has proposed buying Clearwire for $3.30 a share amid opposition among Clearwire shareholders to a deal in which Sprint would acquire the roughly half of Clearwire it doesn't own for $2.97 a share.

        Clearwire previously indicated that Dish has said it would withdraw its proposal if Clearwire drew on the funds made available by Sprint. The financing is in the form of notes that convert into stock—an arrangement that gradually would give Sprint a bigger stake in Clearwire.

        One of the people familiar with the situation said the draw isn't intended to dissuade Dish from pursuing the company.

        The move is the latest in a three-way standoff between the companies as the wireless industry consolidates. Clearwire, which is struggling financially, needs access to cash and is trying to get the highest price for its long-suffering shareholders.

        Sprint meanwhile hopes to gain control of Clearwire's vast holdings of spectrum to bolster its own service. And Dish, which holds billions of dollars of spectrum but has no cellphone network, is looking for a way into the wireless business.

        Sprint executives are expected to inform board members about the exact amount of the draw on Wednesday, according to one person familiar with the matter.

        Sprint agreed in December to buy the shares in Clearwire that it didn't already own. At the time, it also agreed to provide up to $800 million of financing to Clearwire through notes that convert into stock. Clearwire can sell Sprint $80 million of the notes each month for up to 10 months.

        Clearwire disclosed Dish's proposal in early January. Clearwire didn't draw on the funds in January or February.

        Clearwire continued to recommend that shareholders approve the deal with Sprint, while continuing talks with Dish.

    • Was wondering the same thing half hour ago. Who knows. At first I was thinking how this sucks, but I'm wondering if this is really true, if so does that help Crest's case? If you have a higher offer can you really say no while a pending lawsuit accuses you of selling out the shareholders? I know the politics involve between all of this companies is full of drama, but the legal questions being raised are serious. All deals leave clearwire being bought out, so shouldn't the highest bidder win? Time will tell at some point!

 

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