Sprint Nextel Corp offered to buy Clearwire Corp for $2.2 billion but it would likely to face opposition from Clearwire’s minority shareholders. But analysts said that investors’ best option is to accept the offer.
Clearwire Chief Executive Erik Prusch said that the company might need to restructure if shareholders continue to oppose the acquisition. Majority shareholder Sprint has to pay $2.97 per share for the 50 percent of Clearwire that it doesn’t own.
Clearwire has been trying to get additional financing in order to upgrade its network and stay afloat. It had no other alternative except Sprint’s offer. The acquisition requires approval from majority of Clearwire’s minority shareholders.
Crest Financial, which owns more than 3 percent of Clearwire, said that it would file a class action suit against the deal. Another investor, Mount Kellett that owns 3.6 percent of Clearwire’s shares, said that Sprint’s initial offer of $2.90 per share undervalued Clearwire.
Clearwire’s largest minority shareholders said that they were hoping for higher offer from Sprint. They said that it was not the right price. They argued that if Clearwire is important for Sprint, the company must increase the offer instead of letting it go bankrupt or allow a portion of its spectrum to go to another company.
Getting full ownership of Clearwire will help Sprint in its efforts to provide high-speed wireless services to compete with its rivals. At present, Sprint is the third largest wireless service provider after Verizon Wireless and AT&T Inc, which are the largest and second largest respectively.
