More clarity with Sprint Nextel Corporation (NYSE:S) Clearwire deal
Today, Sprint (NYSE:S) and Clearwire announced that have mutually reached an agreement via which the previously decided deal will be amended. Sprint will now be acquiring the nearly 50% of Clearwire that it still does not own, at $5.00 per share. Via this offer, Clearwire will be valued at almost $14B. This raised offer represents a 47% premium to the $3.40 per share offer that Sprint’s was to pay. It also represents a 14% premium to the $4.40/share DISH tender offer.
Sprint has now received commitments from an entire group of prominent Clearwire stockholders, including Glenview Capital Management LLC, Mount Kellett Capital Management LP, Highside Capital Management LP and Chesapeake Partners Management Co., Inc. All these stakeholders collectively own around 9% of the company’s voting shares and they will be voting their shares to support the transaction. In case the transaction does not close for some reason, they have agreed that they will sell their shares to sprint.
What are voting shares?
Voting shares are the shares of stock in any company that have voting rights. They allow people to participate in various decisions such as board membership and corporate policy. Voting shares are generally more valuable than normal non-voting shares. People can receive benefits from their stock ownership as well as make certain decisions about the operations of a company.
The stockholders who hold these kinds of shares are able to vote whenever any new policy is put forth or when any critical decisions like acquisitions and mergers are under discussion. In addition to this, they also have the right vote members out of the board and also replace them. They are part of the selection process whenever board members step down voluntarily. This permits them greater control on the operations of the company and provides them with a means of directly influencing the activities of the company. This also gives them a chance to increase their returns. And thus, the major Clearwire stockholders will play a critical role in the way the dealings between Sprint (NYSE:S) and Clearwire progress. It finally seems like the entire story is finally nearing a close very soon.