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Clearwire Corporation (CLWRD) Message Board

  • dwz1234 dwz1234 May 15, 2013 8:49 PM Flag

    So many misconceptions

    Clearwire chairman shares his 'reality' with shareholders

    Clearwire Corp.’s executive chairman took a stab at reality on Monday.

    In a letter to Clearwire (Nasdaq: CLWR) shareholders, John Stanton urged them to accept Sprint Nextel Corp.’s merger proposal.

    Shareholders are slated to vote on the Clearwire-Sprint (NYSE: S) merger on May 21 in Bellevue, Wash.

    To help make his case, Stanton attempted to break down some of the criticisms, or what he deemed “misperceptions,” surrounding Sprint’s offer.

    Here are some “misperceptions” that Stanton identified, followed by his interpretation of “reality,” according to the letter (Stanton’s language is paraphrased unless in quotation marks):

    Misperception: Sprint’s proposal values Clearwire’s spectrum below market.

    Reality: It’s doubtful Clearwire will receive interest from another buyer planning to buy all of Clearwire’s spectrum at a price higher than what Sprint is offering. Dish Network Corp. (Nasdaq: DISH) and Verizon Wireless only trying to buy only “premium” parts of Clearwire’s spectrum.

    Misperception: Shareholders would receive more value from bankruptcy or financial restructuring than accepting Sprint’s offer.

    Reality: Financial restructuring or bankruptcy exposes Clearwire to various risks, including vulnerability to new buyers in a company auction and a possible lawsuit from Sprint. Clearwire also risks flooding the market at distressed prices if it sells off the entire spectrum portfolio.

    “The outcome is unlikely to yield value to stockholders exceeding Sprint’s $2.97 per share offer,” Stanton wrote.

    Misperception: Clearwire should accept alternative financing proposals in lieu of relief from Sprint.

    Reality: “A spectrum sale does not solve the fundamental need for significant additional revenues, and would not provide sufficient liquidity for operations,” he wrote.

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    • Yhe first statement is classic chicken sheet, 'It’s doubtful Clearwire will receive interest from another buyer planning to buy all of Clearwire’s spectrum..."

      No one is going to buy ALL of Clearwire's spectrum, first they couldn't if they wanted because of the B.S. agreements he acquest too, Second, do you or he have no concept of how much spectrum we are talking about? It is more than VZW or T has and NO SINGLE OPERATOR is going to use it all. Even a newbie understands the need for a balance between coverage and depth spectrum.

      Not everyone that reads these comments have little understanding and not everyone can be mislead with such simple slight of hand (or wording in this case). Just shameful and intentional misdirection on his part.