Crest outlays scenarios after "No" vote in latest letter and envisions direct bidding war for CLWR. Most informative letter yet!
Available today under SEC filings on Clearwire's investor page
Some may argue that our possible scenarios will not play out for one simple fact: Sprint will not sell its shares in Clearwire. Indeed, we understand that Sprint cannot be forced to sell its stake in Clearwire. However, we can envision a scenario where Sprint could be a seller. This could occur if bids for Clearwire were high enough to convince the Sprint board of directors that, in exercising their fiduciary duties, a sale of Sprint’s Clearwire stock is in the best interests of Sprint and its stockholders. We could envision a scenario in which such a decision was a rational outcome. If this circumstance were to present itself to the Sprint board of directors, it could determine that Sprint could carry on its current business without controlling Clearwire. Such a determination could be based on the following: Sprint would have already received a significant influx of cash (over $3 billion) from SoftBank. In addition, Sprint would receive a significant amount of additional cash through the sale of its Clearwire shares, which would provide Sprint with an opportunity to reduce its debt and gain additional liquidity. And, finally, Sprint would still have access to Clearwire’s spectrum through its existing 4G MVNO Agreement with Clearwire.
On the other hand, if Sprint were to prevent a sale of the Company, we ask you: What does that say about Sprint’s assertions regarding the value of Clearwire? Sprint believes that its $2.97 per share price is fair to Clearwire’s minority stockholders. If the Clearwire Board were to conduct the sales process we describe here and obtain a better offer than the Sprint offer, how could Sprint say with a straight face that such an offer is not better for Clearwire’s minority stockholders? We would say: It can’t.
"After we the stockholders have rejected Sprint’s unfair offer, the Clearwire Board will be free to terminate the Sprint-Clearwire merger agreement, consider direct bids from DISH, SoftBank, or others for 100% of Clearwire, and recommend in favor of such a direct bid."
They will also be able to obtain alternative financing and sell spectrum to Verizon once the merger agreement is terminated, without obtaining Sprint's direct approval first. The question is will they terminate the merger agreement? Or are they so in bed with Softbank that they will continue to act as puppets doing whatever they are instructed?
This most recent filing was For Immediate Release, so I expect a PR out soon.
There was a lot of knee deep #$%$ on this board over the weekend. But anyone who wants to be informed of the latest talk should read the Crest Filing on Friday or google "Clearwire PRnewswire" for the press release that does not show up on Yahoo news for this ticker.