Crest Financial frustrated by minority shareholders’ position

29 May 2013

Crest Financial, which holds roughly 8% of Clearwire’s public non-Sprint shares, is seeking to discount the votes of strategic investors – and fellow minority shareholders – such as Comcast and Intel ahead of this Friday’s vote on Sprint Nextel’s improved USD3.40 per share offer to take control of the WiMAX firm. According to Reuters Intel, Comcast and Bright House Networks, who between them own roughly 26% of Clearwire’s minority shares, plan to vote in favour of Sprint’s purchase of Clearwire, but Crest has argued that the situation is unfair because said investors have ‘pledged to support Sprint regardless of the alternatives available’ and that ‘for all intents and purposes these are Sprint shares, and their votes should not be counted as minority approval’. Sprint needs the support of 50% of Clearwire’s minority shareholders to complete the transaction, which is contingent on the closing of Softbank Corp’s USD20.1 billion deal for 70% of Sprint.

United States, Bright House Networks (Spectrum), Clearwire, Comcast Corp (Xfinity, incl. Xfinity Mobile), Intel