Bloomberg News

Crest Says Glass Lewis Opposes Sprint’s Clearwire Bid (Correct)

May 28, 2013

(Corrects Crest’s holding in first paragraph).

Crest Financial Ltd., an investor in Clearwire Corp. (CLWR:US), said Glass, Lewis & Co., a proxy-advisory firm, is opposed to Sprint Nextel Corp. (S:US)’s sweetened offer for the wireless carrier.

Crest commended Glass Lewis for recommending a vote against the proposed merger, it said in a statement today.

“Glass Lewis’s independent analysis and expert opinion confirm our view that Sprint is continuing to divert value away from Clearwire and toward Sprint,” David Schumacher, general counsel of Crest, said in the statement. “As Glass Lewis has pointed out, in pursuing this transaction with Sprint, Clearwire’s board of directors has shown ‘sharply disproportionate deference to the interests of Sprint,’” Schumacher said.

Sprint last week increased its bid by 14 percent for full control of Clearwire as it sought to persuade opponents of the takeover to accept the deal and fend off a competing offer from Dish Network Corp. After the increased offer, Crest, a Houston-based firm, and a group of investors led by Mount Kellett Capital Management LP both filed letters calling for shareholders to reject the new terms.

Crest said Glass Lewis questioned Clearwire’s review of alternative offers and the “only proper response from Clearwire shareholders is to vote down the still-inadequate offer by Sprint and wait until the contest for control of Sprint is resolved.”

To contact the reporter on this story: Ben Livesey in San Francisco at blivesey@bloomberg.net

To contact the editor responsible for this story: Kevin Miller at kmiller@bloomberg.net


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Companies Mentioned

  • S
    (Sprint Corp)
    • $6.06 USD
    • -0.18
    • -2.97%
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