Clearwire Corporation (CLWR): The Day of Reckoning

The view from the other side
Some minority shareholders see the Sprint Nextel Corporation (NYSE:S) proposal in a very different light.

Hedge fund Crest Financial has been leading the charge against the buyout, claiming it substantially undervalues Clearwire’s shares. Last December, Crest, owner of 6.6% of Clearwire Class A common shares, sued Sprint and Clearwire Corporation (NASDAQ:CLWR)to stop the buyout, and alleged “breaches of fiduciary duty by Clearwire’s controlling stockholders and its officers and directors.”

The holder of 7.7% of Clearwire shares, hedge fund Mount Kellett Capital Management, sent a letter to Clearwire’s board stating it believed “Clearwire’s stock to be substantially undervalued.”

And another shareholder lawsuit has been served on Clearwire, this one from Aurelius Capital Management. The suit claims that Sprint used its power as Clearwire’s majority shareholder to push “manifestly unfair” conditions upon the minority shareholders.

The day of reckoning
Clearwire has sent out its proxy statement in the form of its letter urging a “FOR” vote, and Crest Financial has sent out its proxy statement urging “AGAINST.” The vote whether or not to accept the Clearwire board’s proposal will be held at a special shareholders’ meeting on May 21.

The article Clearwire’s Gloom-and-Doom Proxy Statement originally appeared on Fool.com.

Fool contributor Dan Radovsky has no position in any stocks mentioned. The Motley Fool recommends Google Inc (NASDAQ:GOOG). The Motley Fool owns shares of Google Inc (NASDAQ:GOOG).

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