Crest Financial the largest minority shareholder in Clearwire, has made good on its promise to wage a proxy battle to block Sprint Nextel’s $2.97-per-share offer to buy the remaining 50 percent of Clearwire that Sprint does not already own, reports Fierce Wireless.
Crest said it filed a preliminary proxy statement (pdf) that, if cleared by the Securities and Exchange Commission, will urge Clearwire shareholders to reject the Sprint offer.
Along with other minority Clearwire shareholders, Crest has said the Sprint proposal undervalues Clearwire; Crest supports Dish Network’s conditional $3.30-per-share counterbid to Clearwire. Clearwire’s shares were trading at $3.27 per share this morning, reports Fierce.
One analysis of the Clearwire financial statements indicates the Sprint offer of $2.97 per share corresponds to a value of $0.11 per Mhz pop.
The Liopiros Report states the value is $0.21 per Mhz pop or more. Crest Financial may have a point.
The 2.6 Ghz band has traditionally been cheap since it has poor propagation, requiring many more access points than the AWS or PCS band.
But recent developments in the cellular market are making small cells in urban cores more attractive. Nodes in the 2.6 GHz band can fit on a lightpole, they deliver the necessary bandwidth that video-centric users require, and mobile devices now support the band. Video accounts for 50 percent of Verizon’s traffic today and by 2017 the carrier estimates video will make up two-thirds of all traffic.
Fiber to the tower is an enabler of small cells. The development of municipal Gigabit fiber networks may make 150+ Mbps small cells practical on a large scale.
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