Clearwire to shareholders: Sprint's our only hope
A letter to shareholders from the wireless broadband company ignores Dish and says the proposed takeover offer by Sprint provides the best possible value.
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Clearwire told shareholders in a letter sent on Monday that its best path lies in an acquisition by Sprint Nextel.
The letter laid out in extensive detail why Sprint's offer of $2.97 a share provides the best value for shareholders. Nowhere in the letter does it reference Dish Network's rival bid for Clearwire, which is actually higher at $3.30 a share.
According to Clearwire's board, Sprint's offer is the only legitimate one. The wireless broadband company said Sprint's offer represents "fair, attractive and certain value." The deal represents the culmination of a multiyear review. The board conceded that Clearwire's standalone prospects are shaky, noting the company's inability to secure a second major customer beyond Sprint.
Other alternatives, including the selling off excess spectrum or obtaining additional financing are not feasible, the company said.
Still, some Clearwire shareholders have been agitating to look at Dish's higher offer.
It's unclear what the status of Dish's offer for Clearwire is. The company has made a $25.5 billion offer for Sprint, although Sprint has already committed to being acquired by Japanese carrier SoftBank.
Sprint is the majority shareholder in Clearwire.
Clearwire shareholders will meet on May 21 to vote on the proposed transaction.