In light of the Clearwire BOD to give themselves huge bonuses if the Sprint buyout goes through, it seems a look at other company buyouts is in order to determine if this is a common practice. Crest, I am sure if you crunch the numbers you will quickly see that these large payouts to the BOD only occurs when buyout undervalues the price of the company. The fact that the Clearwire BOD has voted themselves a bonus if the deal goes through clearly shows by their own admitance that the deal is insufficient. There would be no need for a bonus had the bid been forced by the BOD to be higher and then the BOD would according be paid more based on their share holdings.
Sentiment: Strong Buy
You are correct. Clearwire's BOD has a "fiduciary responsibility" to act in the best interests of shareholders when a bid for the company is made. If an "arrangement" is made by which that BOD gains financially as a result of supporting one bid over another... or supporting a bid vs rejecting the bid, then that arrangement presents a "conflict of interest" that violates their objectiveness toward acting in a fiduciary way.
It's like money laundering. If a bank accepts a $10,001 cash transaction without reporting it, that is a violation of FCPA whether or not that $10,001 was laundered money because the bank has violated the books and records provision of the act. The same is true with Clearwire's board... they are violating their fiduciary responsibility to shareholders by setting up financial incentives that compel them to support one outcome over the other.
That's why this raised a lot of eyebrows in a bevy of press reports.
Lets get Real here . Do you Really think people like Crest / Dish or any BOD members look here on penny message boards or any boards as far as that goes?
only thing here are penny players in school cause they can not get a Mc Donald job to pay their book fees for the next quarter..
I just stop by for the laughs but I still hold shares of both Clear and Sprint and do hope the sale price goes much higher but it will not be from what anyone here posts. you can take that to the bank
The problem with your argument is that there is no other competing bid out there. Dish is NOT bidding for the entire company while SB-Sprint is.
There is nothing wrong or illegal about executives and directors getting a nice golden parachute because it’s a common protocol.
The FCC site has DISH's latest submittal - google on FCC 7022132494 .
The article points out the jest of it: DISH is resigned to pushing for how this and other spectrum will be treated rather than asking for the deal to be shot down. And the only mention of DISH's offer to acquire Clearwire is the indirect reference in the sub-notes. This confirms that DISH is unlikely to make another offer and that they have little hope of acquiring Clearwire or its spectrum directly. DISH puts forward objection to FCC allowing other spectrum to be conceded to Sprint-SB without some adjustments, ie. as a windfall.
This posturing is narrowing options towards what I thought was likely: rulemaking that would enforce open access rules and, perhaps, put in a new regimen that amounts to a codified way of assuring 'fair and equal' wholesale access to portions of the spectrum, probably aimed at EBS/BRS. Even though that last bit of rulemaking is not as troublesome as taking back and auctioning of spectrum, it could be difficult. I think it makes sense .. even for Sprint-SB because although it would impose new rules on how they could use parts of the spectrum or provide wholesale roaming, that would contribute to achieving a profitable network profile.
The process is narrowing - as it ever was.
Here is another one for you. Why has Intel and all the other companies set to indirectly benefit from Sprint not sold their shares and held so long? Answer, 1) They will benefit indirectly significantly if they vote yes to merger. 2)CLWR is significantly undervalued and they are holding out for a much bigger payoff. THERE ARE SIMPLY NO OTHER REASONS. IF CLWR was only worth 3 to 3.50 a share they would have sold a long time ago based on the time value of money at 2 to 5% interest.