Clearwire Corporation (CLWR): Sprint Nextel Corporation (S) Asks FCC for Quick Approval, While Investor Opposition Grows

Moreover, DISH Network Corp. (NASDAQ:DISH) made a counter bid for Clearwire, as it desires to diversify its product offering and enter the mobile broadband world. The satellite company’s counteroffer of $3.30 a share reiterates the investor’s view that Cleawire’s spectrum asset is being undervalued by Sprint Nextel Corporation (NYSE:S).

Though Clearwire said that its special committee is weighing both the proposals, it is pretty evident that Sprint is their preference. In the meanwhile, Dish disclosed its primary intention of acquiring Clearwire’s spectrum, and said that its main interest is to partner with Sprint.

Crest believes that Sprint’s offer is unfair, and that the carrier is misusing its position as the largest stakeholder to buy Clearwire at a highly discounted rate per share. The investor is confident that Clearwire Corporation (NASDAQ:CLWR)’s shareholders will reject the deal. Crest has argued that the deal isn’t in the best interests of shareholders, particularly in such a spectrum tight environment. However, Sprint considers Crest’s argument as ‘baseless and without merit’.

Looking ahead – Attack and Defend

The approval of Clearwire’s shareholders is very critical for Sprint. The transaction shall fall through in case 25% of Clearwire shareholders vote against the deal. Even if 25% of the shareholders do not cast their vote, the deal will get blocked. If things go in favor, SoftBank plans to infuse $8 billion to accelerate Sprint’s Network Vision.

If there is a delay, it would make Clearwire Corporation (NASDAQ:CLWR)’s position extremely vulnerable, as it is looking for additional financial assistance to offer its 4G services. The deals need timely approval from the regulatory body. This will help Sprint Nextel Corporation (NYSE:S) to speed up the process of its network deployment, and attack its bigger rivals more effectively.

Not only this, it is also essential for Sprint to defend its current position and continue widening its distance from T-Mobile, particularly after the fourth largest national carrier won FCC’s approval on its MetroPCS Communications Inc (NYSE:PCS) merger proposal. In all, this it would be interesting to watch how well the Kansas-based carrier learns both the attacking and defending techniques.

The article Sprint Asks FCC for Quick Approval, While Investor Opposition Grows originally appeared on Fool.com and is written by Rajesh Marwah.

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