Crest offers Clearwire $240 million financing to counter Sprint bid
04 April 2013 | Kavit Majithia
US wireless provider Clearwire has been offered enough capital to build out 2000 new generation network sites through a proposed $240 million financing proposition from minority shareholder Crest.
Crest shareholders have actively voiced their opposition at Sprint’s pending takeover of the company, stating that its offer is too low and has made the offer to counter Sprint’s bid.
Sprint, which already holds a majority stake in Clearwire, has invested approximately $160 million in the company so far this year . US third largest operator Sprint struck an agreement to takeover Clearwire last December, but still needs approval from minority shareholders to complete the deal.
Crest said its proposed financing could provide Clearwire with more time to make a decision, and assess its alternatives to Sprint’s offer to acquire 49% of the company that it does not already own.
Clearwire spokesman Mike DiGioia has said the “special committee of the Board will evaluate the offer to determine what, if any, action to take”, of the Crest offer.
The company said last week it would draw on $80 million of financing from Sprint, and has now started tapping into Sprint’s offer since March this year. It was still considering a counter offer, of $3.30 per share from satellite provider Dish Network prior to this.
Sprint’s offer, of $2.97 per share, has been widely criticised by Clearwire shareholders.