I believe that was part of what Hope said. We have submitted the loan information to Sprint and they have refused approval. Sprint will willingly cut off sales revenue on the WiMax side and not allow the company to take advantage of better loan terms being offered? Why won't they be more specific about the VZW offer...well they sure wouldn't want to have competitive bidding start up for it...nope wouldn't want that.
So you feel that if a previous management binds the companies hands that the new management gets a free ride on giving away their fiduciary responsibility to all investors? How cool will that be for all CEO's who want to screw the minority holder, I think the courts should allow that kind of corporate gymnastics , it will make for a lot of fun on Wallstreet.
If they try to steal clearwire for below 8 dollars per share sprint will be sued for billions of dollars by all the clearwire investors. it's not if the lawsuits will be filed, it is only a matter of when. the most conservative estimates for the value of clearwire begin at 8 dollars a share!!!
Mr Son doesn't want or need all this distraction and believe me, distraction is a kind word... Crest will lead the class action ( if it comes to that) and the exodus will begin. It is my opinion SB and S have 2 foes... The Clwr common shareholders and steely mr Ergen ... Mr son needs to figure out how to neutralize both.... The drama for Clwr continues...
I was just going to post this. This whole situation stinks. Just waiting for the proxy so I can vote no and move on to something better.
Hope said in the CC:
Beyond the funding available under the interim financing facility, the merger agreement limits our ability to raise capital without Sprint's approval. To the extent we have received unsolicited funding offers following the announcement of the merger, we have taken those offers to Sprint for approval. In each instance, Sprint has indicated it is unwilling to provide consent at this time.
If the Sprint merger agreement terminates, the remaining funding under its interim financing facility would no longer be available to us. In such a case, we would take actions to curtail spend, including stopping new-build CapEx spend in order to preserve liquidity. And unless we were able to raise additional capital or generate sufficient additional revenue in a timely basis, we estimate that our cash balance would be depleted sometime in the first quarter of 2014. Of course, if we receive the necessary shareholder approvals, including for the Sprint merger, we would have access to the funding necessary to continue operations in our current LTE build plan for at least the next 12 months.
The irony is that the merger agreement prevents Clearwire from getting alternate financing or selling spectrum without Sprint's approval. So the obvious answer is for shareholder's to terminate the merger agreement by voting against it. Then Clearwire can accept a quick $320 million from Crest and Aurelius, which is only slightly less than the $400 million Sprint would have provided. Or better yet they could sell spectrum to Verizon and pocket $1 billion debt free.
Yet they have the nerve to threaten that without the Sprint financing they will have to give up and stop the LTE build out (which Sprint needs desperately). That doesn't even make sense.
How many times do you need to hear it before you give it up? Clearwire has agreed to be acquired. The unsolicited offers cannot measure up unless they are 'a deal too good to refuse' with Sprint-SB being the Al Capone gate keeper that decides which deals live or die? Its been the same situation for months, going back since before Sprint put their offer on the table. One of these days you will grok all that. Next time something similar spins around.. you might be a short seller if you've learned your lesson.
Al Capone wound up in prison. Who knows if it comes to that again regarding this so called deal that stinks. Most minority will not accept the low ball tender offer. Sprint will have to increase their offer price.