Companies Like Sirios Don't Own CLWR Just To Hand It To Sprint
Hedge funds and private equity have been plunging into Clearwire because they are geared to do battle with Sprint... not to acquiesce to a below-the-belt brawler like Dan Hesse.
This is a classic battle between a controlling company that's trying to put the finishing touches on 3 years of effort to steal clearwire for pennies on the dollar...
... and a phalanx of opportunistic hedge funds and private equity companies who see deep value in clearwire and fully intend to stick it to Hesse and Son until they can rip some deserved value out of this resource rich, red-headed, step-subsidiary that sprint has conditioned itself into feeling that it can do anything it wants to with.
I'm with the hedgies and private equity. Teamrep can rationalize this thing all he wants to from a techinical or operational perspective...
... but his arguments, that seem, in Teamreps un-orthodox, cerebral way of enunciating things, like clearwire really IS worth $2.97 are the last thing on earth that those companies are paying any heed to.
Clearwire is a badly, underpriced asset play... and seemingly EVERYBODY wants a piece of it... any piece they can get.
I wonder why Mr Stanton is pushing back then on Clwr's ability to raise capital?
n the letter, Clearwire's (NASDAQ: CLWR) Stanton writes that "our stock has been as low as 83 cents in the last year. The proposed (Sprint) $2.97 per share offer price equates to a total payment to Clearwire minority stockholders of approximately $2.2 billion. ... The proposed transaction with Sprint provides a clear solution to the substantial funding gap Clearwire is facing. Absent the Sprint transaction, Clearwire's prospects of securing the $2-$4 billion in additional funding necessary to continue operations and the LTE build plan are highly uncertain."
That is well said Spok. Either the MM's see the value or anticipate some payout beyond the 2.97. Most are not anxious to jump into a court settlement situation, so they are seeing some light in the tunnel. (notice I didn't say end of the tunnel)!