3 scenarios going forward:
1) Around 1/3 or more of independent minority shareholders vote in favor with Comcast and Intel and $2.97 becomes a done deal other than lingering lawsuits.
2) Around 2/3 or more of independent minority shareholders vote against the deal, Sprint/Softbank ups the offer and then gets the votes required. Acceptance of a higher offer may waive rights to litigate.
3) Vote goes against the offer and S/SB refuses to up the offer enough to get the votes. Initially the share price drops, but S/SB charges full steam ahead with their plans. The share price may rise as TD-LTE is rolled out on all Sprint sites as a integral part of the network. Over time Sprint gives $800 million in exchange for convertable notes. A year from now, after the standstill agreement expires, S/SB converts the notes and in combination with the Comcast and Intel shares has 73% of the voting rights. They then buy up another two percent of the shares and tender an offer at market price for the remaining shares and self approve the deal.
... at this point in time, a share holder can help correct this wrong? Join a class action suite, file their own suite, call one of the investment firms planning a law suit, ... ???? I have what I consider a considerable holding and would like to enlist my support.
You’re forgetting that Sprint was smart enough to expect few holdouts so they have instituted an $800M convertible bonds that will turn into equity which will dilute your shares while providing the much needed Clearwire control shares for themselves.
Marketwatch: (Kellettl Letter To BOD):
“Second, the convertible debt financing proposed by Sprint, which would be put in place prior to stockholder approval of the Sprint proposal, together with the threatened purchase of Comcast, Intel and BHN (the "Strategic Investors") 13% stake in Clearwire in the event that the public stockholders turn down the Sprint proposal, is a clear threat to the minority stockholders to vote in favor of the Sprint proposal or face the dilution of the value of their stake in the Company from the convertible debt and an ultimate squeeze-out transaction when Sprint achieves a 90% ownership stake.”
There is a significant block of CLWR shareholders that will try to hold out for a higher price, said Jonathan Chaplin, an analyst at New Street Research in New York. At least half of CLWR's non-Sprint investors have to vote in favor of the deal, and after a week of heavy volume, it’s unclear how big a block of stock they own, he said.
If holders that are opposed to a deal at this price picked up 20 percent to 25 percent of the 190 million shares that have traded since this deal was announced, they could have enough shares to block a deal, Chaplin said.
... while crest and Mt. kellett have about 10.2% of them. The remainder are in play. We're working to get to them before Hesse does with his salesman personna...
... let's face it... he's good at that in the eyes of those who havn't studdied his tactics for awhile.... very soothing and non-invasive in nature as he works to engineer the steal of the century.
Today, I'm primarily talking to people (including this board) who are good at talking to others who have an interest here. Tomorrow, I'll be working my own list.
There's no way to know if Hesse will get the suckers... er... the votes... but my response today has been overwhelmingly positive. It's important the people get the rational man's view either before or shortly after the official line from the Hesse/Son goons.
Tally Ho... this is the end game we've been expecting with CLWR. Hopefully, it won't drag out in court but if necessary, so be it.