20% spectrum sale requires no approval from Sprint
Only a board majority, yes sprints gnomes are included of course in the board, but in the best interest of all shareholders the board must at least offer it up for sale to set a 3rd party price point that would then reflect a "market value of the remaining 80%?" Okay lets say 20% of the spectrum or in this case about 35mhz of spectrum in 100 cities across the usa would fetch say 4 billion bucks - I am thinking the answer is yes - because both ATT and VZ would be allowed to bid. Okay CLWR hs 4-5 billion bucks and pays off all outstanding debt. They are now income positive going forward to the tune of several hundred million per year. Sprint is a money losing, projected to lose 2 billion in 2013, so who is in the frickin driver seat? NOT DAN.
Sprint would like to get clwr for $2.90 which values the entire company at about 8 billion, includes debt of 4 billion and the 2 billion of shares sprint owns and the 2 billion they are trying to get.
Sprint would then like to sell 20% of the spectrum, same move clwr could make now, for 5 billion bucks......anyone else see a shareholder scam here too? Okay if 1/5 of the company is worth 5 billion the other 4/5 would be worth 20 billion, minus debt of 4-5 billion or about 15 billion. In this math example sprint values their shares presently at 2.1 billion or so and the shares they do not own at 2.1 billion or so, with the debt being about 4 - total value they place on clwr is about 8 billion. 40% of market value offer.........good luck with getting shareholders take that..........