Simple. The 4 large shareholders announced today who are working together to get a higher price for their shares are all wanting to part with Clearwire... for the right price.
Crest Financial has stated that they DON'T want to sell their Clearwire position... that it is a strategic investment for them and they want to see Clearwire continue to operate as a separate entity.
Still, we need to look at Crest as being in alignment with the other 4 shareholders in the group from the perspective that they ALL oppose Sprint's ridiculous, $2.97 offer for clearwire... and that those 5 shareholders combined get the no vote very close to the number of votes necessary to reject this thing... just on the basis of THEIR votes only.
Aside from those 5 shareholders, I'm not hearing a skintilla of support for the sprint bid from anybody at all... except, of course, sprint lap dogs Intel and Comcast.
Even Softbank's Masayoshi Son was talking the other day like he sees this as a failed bid. He spent his time talking about how just buying out Intel and Comcast and letting the remaining 33% of the stock continue to trade publically is something he can live with.
The $billion dollar question: Would sprint continue to hammer and manipulate clearwire once it's combined with softbank or dish and controls 67% of CLWR? I think not. The reason for hammering CLWR for the past 3 years was to buy it out cheap... and that effort has obviously failed. With 67%, they're much more likely to want their clearwire stake to be accretive to their balance sheet and credit rating, and that would mean treating it like the valuable subsidiary that it always could have been...
... instead of Dan Hesse's red-headed stepchild whipping boy.
Wow, you're either a pathetic CLWR shill or just a plain stupid. You said your cost average is just under $2.00 and yet you've held??? I think you're full of bull and your cost average is much higher becusse you seem desperate and your logic just isn't there...you're a shill my friend!! And a manipulator, to believe your own dumb speculation. You and I both know below is most likely how this will play out...quit it with the stupid BS about CLWR remaining a separate corporate entity. I know you can't believe that unless you're just plain stupid!!........
You're missing the most important point of what will play out relative to the Equity Holder's Agreement...it EXPIRES this fall, and then Sprint is no longer prohibiited from buying shares in the open market. They will do so and Clearwire will be absorbed!
THAT is the reason why Mr. Son is not worried if outstanding minority owers don't approve now! CLWR will continue to take the 80million monthly convertible, which WILL be converted, leaving little that will be required to purchase in the open market, all the while providing CLWR the funding necessary to continue LTE conversion per Sprints desire.
Honestly, I'm surprised you long time posters seem completely unaware of the Expiration, and that being the primary reason for a convertible loan...it's the the all too obvious fall back plan!!!
Guys, honestly you're making this much harder than it is...Sprint will spend the rest of the year accelerating Network Vision, and will utilize CLWR spectrum in 2014 to coincide with device availability that they will get as
the new 3rd largtest global carrier.
Spok will comtiue with his desperate logic about how adish will acquire Sprint and jus be happ to have CLWR as a stand almoe entity and will thrive and profit, or whatever iphis latest bull crapis because he's under water on his position!!!....please Spok tell us sheep aoit how CLWR will somehow remain an entity and thrive....omg man anyone you are full of bs!!!
wow. nice. let's see.
3. plain stupid.
4. full of bull.
8. dumb speculation
9. stupid BS
10. plain stupid (again, I guess I you are running out of things to say)
A very substantive piece of writing. And that is just the first paragraph!
call me impressed.
Bobbig I have a question..... What kind of pathetic jerk off would take the time to write the above? Did it every occur to you that sprint can't have all that spectrum in the scenario you described?
So the best they can do is own x % 50 of clwr. Once they have that can you imagine a scenario where they would want it to be as valuable as possible?
The energy you display in trying to persuade people to see things your way implies that you have an interest in seeing the price drop. Otherwise your behavior is irrational and and lack an incentive.
You too lack the gift of clairvoyance, so why not shutafukkup?
At 67% ownership means Sprint controls the BOD and Management effectively on Nov. 1, 2013 with a 2/3 majority through Clearwire bylaw.
This means Sprint decides all matters of Clearwire’s business and operation including who gets to become Clearwire’s wholesale customers (certainly not Sprint's competitors). Effectively, Clearwire becomes Sprint’s employees but with its own balance sheet and the added bonus of not having to pay minority shareholders off and when financing is needed Clearwire can issue more new shares. In such circumstance of a predetermined revenue and cash flow provided by Sprint I cannot see how investors will continue to invest in Clearwire.
I mean, why would they?
Spl wil never reply honestly about the Equity Holders agreement expiring laterthis year.....hello Spok...stop your bs and speak the the likely truth. Sprint deosnt need the vorpte to pass and they don't need to p the bid because in a handful of months when the Equity Holders agreeemnt expires its all over, they can but shares in the open market and will have converted their bond to shares and comtrol the copmany.
Please super smart spok avoid this and just tell us how CLWR will remain its onw happy little entity thriving on wholesale spectrum leases...omg you are a sad under water stock holder that has fallenin love with his stock due to necessity!!! Omg i laugh at your dumb sheep that listen to your bull and ignore the facts of the equity holders agreement just as you are....I bet you don't respond because your a fraud my friend!!a, See you in November...wonder what excuse you will have then.....lol....lol...lol
Beach, this vote didn't quit work out as you thought, right? I mean a lot of effort went into being sure the stock price would below 2.97 offer, however anyone who wanted to sell the stock would have done so even today at a price of 3.38 or higher by simply doing a few mouse clicks right?
So the next best tactic is to suggest the minority holders will get nothing at all...is that right? I just want to be sure I understand where your headed with your comments...thanks.
Its much like that... my view is that Crest is posturing that they want to keep Clearwire separate but are either naive in thinking they can actually do that or see that as the best way to posture to achieve the desired outcome. DISH and Crest efforts, imo, will both be thwarted with the outside chance that the FCC would intervene or some other outlying occurrence being the targeted objective because it would be the outcome most feared by Sprint-Softbank. Even as an outside chance, it becomes part of the risk/cost that S-SB figures into the equation about what they do to resolve this.
The forming of the dissident fund holders group outside of Crest does what its apparently set up to do: to put forward a clear objection to the $2.97 price while not locking step behind Crest' less tolerant position. This suggests that the group is willing to settle for, perhaps, something in line with the figure I've mentioned in the past.. a 30c-50c or so higher price. Since the current price is ~$3.30, it seems something closer to $3.70 might be needed to win over this group. I can't read their minds any better than you can.. but perhaps come at this from a different perspective and set of experiences.
My guess is that the power to settle this rests more with the Mt Kellett group because other investors will view them as being reasonable and also because that would likely be enough to break over the threshold. Sprint (and the fund managers) will have much closer fingers on the pulse because they can judge how votes and interested parties are stacking up.. My perspective is based more on 'feeling' of how this should work out given the various factions interests and external factors involved.
funny how you guys lead people to believe that clwr is in such bad shape yet others are willing to loan them millions aside from verizons offer of 1.5 billion...
it's not working the pps should be around 5 by now and it looks like it's going there......
Spok, I agree in general, but aren't you concerned that if they don't get their way now, they will simply try to buyout the minority shareholders in December when the standstill clause expires? If that is plan B, they may continure to try to keep the share price down. I would be interested to know your thoughts on this.
There are more provisions to the standstill than just the vote required on a share tender. For example, it also eases clearwire's ability to sell spectrum without sprint's ok and the tender provisions could easily be extended in exchange for actions on the part of clearwire, or investors, that are favorable to sprint. Heck, a lawsuit with sufficient merit could be dropped in exchange for extension of any of a number of provisions of the standstill agreement. The bigger problem is CLWR's unwillingness to act in a fiduciary manner. If they were truly acting in the best interests of minority shareholders, the standstill provisions would be much less relevant. With sprint in a significant control position, it's easier for a judge to consider a minority position as an aggrieved position if sufficient facts are presented that indicate substantial exploitation.
Hope this helps. There are dozens of ways that this could go, but this group is promising from the perspective of it's organization and negotiating clout where there was much less before.
As a follow on to the above, I DO think that this new "group of 4" heightens the chance for a raised bid. At least they can collectively represent enough votes to show Masayoshi Son that all of us minority shareholders aren't a bunch of renegades out here... that unlike Crest, we all have a price, as long as it's reasonable on not the ridiculous, $2.97 that sprint has been told to offer, and not exceed.
Thing is, Masayoshi is a skinflint. He's only DOING the sprint/clearwire thing because he thinks he can get it dirt cheap. As long as he thinks he has enough control over clearwire at 67% ownership, he may be happy with that and willing to let Crest and the rest of us go along for the ride from here to something closer to Clearwire's true balance-sheet value.
Either way, yours truly will be in Kirkland on May 21st for the shareholders meeting... and I will be talking to a lot of shareholders (fortunately, Spokane is only 290 miles from Clearwire's offices).
It's going to be interesting to see how the dialogue goes given that the $2.97 offer is completely dead in the water now.
"... that sprint has been told to offer, and not exceed."
That is not quit correct Spok, if you listen to the Masayoshi Son presentation supporting his lower bid for Sprint as compared to the DISH offer, he clearly states that Hesse has not come back to him requesting an increased bid price for Clearwire and then goes on to say 'they' may be satisfied with 67% ownership. It really didn't sound as if Son wouldn't entertain a request for a higher bid, only that it hasn't been asked for.
Correct me if I'm wrong, but they actually only have about 9% of the total vote compared to Comcast and Intels combined 13%. So they can't really block the vote by themselves. But with Crest's 4% they can put the vote on a level playing field.
But perhaps more importantly as I think you were alluding to, they can practically deliver the vote to Sprint if the price is right. They can say to Sprint for $6 per share we can guarantee it will pass. Of course Sprint will come back with $3.25 and it will go from there until they do or don't reach an agreed upon price.