Clearwire Corporation (NASDAQ:CLWR) continues in its attempts to talk shareholders into voting for the buyout deal from Sprint Nextel Corporation (NYSE:S). A week ago, the company sent a letter to shareholders recommending the Sprint deal, and today the company’s board of directors says it has finished its due diligence and believes that the Sprint deal is the best option.
As of this writing, shares of Clearwire Corporation were down 2.62 percent, while Sprint Nextel Corporation (NYSE:S) shares were down 1.63 percent.
The Letter From Clearwire’s Board
CNET contributor Don Reisinger reported on today’s letter from the wireless provider’s board of directors. The board said it used analyst advice, its own evaluation and advice from Institutional Shareholder Services, a shareholder advisory organization, in determining which offer was the best.
“When the facts are distilled and the circumstances surrounding this proposed merger are fairly assessed,” wrote Executive Chairman John Stanton, “I believe that the merger with Sprint is the best strategic alternative for all stockholders because it delivers fair, attractive and certain value, especially in light of Clearwire’s limited alternatives and liquidity constraints.”
Several large shareholders have said in a document filing with the Securities and Exchange Commission that they would oppose the Sprint deal. They also said they would work together to find a better deal for Clearwire.
Clearwire: A Brief History Lesson
Clearwire Corporation (NASDAQ:CLWR) has been on the hunt for a deal since late last year. Sprint Nextel Corporation (NYSE:S) made the original deal, and then DISH Network Corp (NASDAQ:DISH) stepped in and made an unsolicited offer.
Meanwhile Clearwire has been trying to keep its options open, although it has dipped into pre-merger funds provided by Sprint more than once this year as it struggled to stay afloat until a final decision is reached.