Clearwire Corporation (CLWR) a provider of fourth generation wireless broadband services, Monday, recommended that shareholders vote FOR all of the proposals relating to the proposed transaction with Sprint Nextel Corporation. The company described the transaction as providing the best strategic alternative for Clearwire's minority stockholders, representing fair, attractive and certain value, especially in light of the its limited alternatives and the well-known constraints of its liquidity position.
Clearwire said the proposed $2.97 per share offer price equates to a total payment to Clearwire minority stockholders of approximately $2.2 billion. The firm said that this transaction represents a total Clearwire enterprise value of approximately $10 billion, including net debt and spectrum lease
obligations of $5.5 billion.
The company further added that the proposed transaction with Sprint provides a clear solution to the substantial funding gap Clearwire is facing and added that its prospects of securing the $2-$4 billion in additional funding necessary to continue operations and the LTE build plan are highly uncertain.
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