Wall Street PR

Sprint increased the price after shareholders rejected its earlier price- CLWR

Mount Kellett Capital Management LP  which does the managing of accounts with beneficial possession of 58.2 million shares or 3.6 % of Clearwire Corporation (NASDAQ:CLWR) said on Friday that Sprint Nextel Corporation (NYSE:S) buyout price of $2.90 per share offer grossly undervalues the wireless service provider.

In a letter the day after Sprint Nextel Corporation (NYSE:S) announces its $2.1 billion bid, Mount Kellett announced that Clearwire Corporation (NASDAQ:CLWR) spectrum procession and the other asserts likely valued the company at $6.30 a share. It also urged the Clearwire Corporation (NASDAQ:CLWR) board not to accept it and said it would be an outrage to sell at $2.90 per share and is a clear breach of the board’s fiduciary responsibility to the public stock holder. Clearwire Corporation (NASDAQ:CLWR) has great long-term value and if Sprint Nextel Corporation (NYSE:S) wants to buy the company it should provide a fair proposal which can be mutually accepted by both sides.

Mount Kellett quoted there is no rush for the company to sell itself at deeply discounted prices. The share prices of Clearwire Corporation (NASDAQ:CLWR) were almost up by 15 percent on Thursday to $3.16 after the offer was announced. Several investors said and felt the offer of $ 2.90 was too low. It is also cited that Sprint Nextel Corporation (NYSE:S) will not increase its bid if Softbank insist on bidding cap.

The shares of Sprint Nextel Corporation (NYSE:S) were up by 0.18% to close at $5.56

The shares of Clearwire Corporation (NASDAQ:CLWR) was down by 13.65% to close at $2.91.