Admitted. I was totally wrong on this. Still confused about the timing.
Do you know whether Crest is getting a shareholders' group together? A joint 13D filing would be great at this point.
Also, someone could easily have taken a 50m stake today to add to the pile.
This just became the most important lawsuit.
Crest may/may not get an injunction on the Softbank/Sprint deal. This holds them hostage in two ways --- potential injunction led by a former US Assistant Attorney General (with the Bushes behind him), plus Mt Kellett / Sirios / Crest refusing to settle for less than $5/share.
Crest leaves out the part that Clearwire's initial business plan failed, and that Sprint's capital injection last year kept them from going bankrupt (AFTER which Crest obtained their shares, at a discount)
I still can’t see how this would benefit Crest that a lawsuit would bring forth. Getting 1 seat on the BOD for Crest won’t do much good if Sprint controls the other 10 seats. If Sprint decides to pull out of Clearwire completely because of the lawsuit Clearwire will be dead (bankrupt) and so does Crest and everyone else. It would be like a suicide for Crest.
Sunny, I cannot imagine Son letting CLWR go at this point. Perhaps, I am wrong, but he has too much emotional investment in seeing his brilliant dream come to fruition. I can't imagine him letting his vision that he has been planning for so long to create, just be an instant bygone.
Honestly, this is fairly brilliant by Crest. All they want is a seat at the table. This kind of thing is going to make SB nervous. Crest will get a seat at the table. This is good for all of us. The only downside would be if this scared SB too much that they backed out -- but thats highly unlikely.
SB already gave S $3 Billion. There is only 1 lawsuit and it can only help boost CLWR share price, IMO. Puts more pressure on those involved to do what is right for all the shareholders. If a buyout comes at a double digit price the lawsuit will have no merit.
Son might treat this like the POS it is, and decide to let them go to court. However, given the political connections the Bush family wields, the injunction fantasy might actually play through.
Something doesn’t sound right. I think this lawsuit is baseless. Based on the CNBC report, Sprint has not discussed any amount for the public shareholders. The $3 was an offer only to the EquityHolder Partner. If the remaining Partner(s) selling at $3 (entirely up to them) through their contract Sprint will be the only buyer. Are these ambulance chasers objecting to the EquityHolder Partner accepting too low of a bid ($3)? I think it’s none of their business, its solely between the seller and the buyer.
Sprint does not have to buy any of the remaining public shares. Sprint can just walk away with a 64% ownership of Cleawire with the Partner’s shares and destroying any hopes for the ambulance chasers (customer walked away, therefore no case to pursue). Of course, Clearwire can try auctioning some of its spectrum but Sprint will probably be the only buyer out there that is interested. Let’s hope Sprint won’t dump Clearwire shares to raise money to buy back Clearwire spectrum because that would really harm Clearwire shareholders and everything will still be legal.
Have you read it?
They're suing McCaw as well.
And yes, they claim Clearwire shareholders are being forced into this situation because of the bankruptcy situation that Sprint has put them into. They quote extensively from flowery Forbes articles (Joan Lappin, even?).
This isn't an ambulance chaser.
Crest owns 45m shares.
They're suing Sprint & Clearwire BoD for letting Clearwire rot (i.e. not building out their network). They're using a relatively reputable source --- a former US Assistant Attorney General.
I don't think the argument has teeth. They merely want to create a negotiating lever against Sprint to force S/S/S to acquire Clearwire.