What the Major Opponent of the Sprint Nextel Corporation (S)-Clearwire Corporation (CLWR) Merger May Really Be Up To

Also giving me pause is Clearwire Corporation (NASDAQ:CLWR)’s board getting behind Sprint Nextel Corporation (NYSE:S)’s latest offer. The issue is that it also supported the first, lower offering. The logic it is giving to support both is the same — it is in the best interest of shareholders. It’s interesting that it was willing to accept the first offer, making me think that desperation is ruling its recommendation.

Conclusion

Sure, the opponents of the Sprint-Clearwire merger believe that Sprint’s latest offer still does not adequately address the value of Clearwire Corporation (NASDAQ:CLWR)’s greatest asset — its spectrum. Clearwire is hanging on by a thread, possibly needing at least $2 billion to stay afloat through the rest of the year. Shareholders could be putting their own investments at risk if they follow the recommendation of Crest. It’s pleading with shareholders to wait in case an even better offer comes along. The question then becomes, “What if it doesn’t?”

Tedra DeSue has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article What the Major Opponent of the Sprint-Clearwire Merger May Really Be Up To originally appeared on Fool.com.

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