Clearwire Files Opposition to Crest's Petition for Reconsideration
This story has been corrected to reflect that Crest Financial Limited owns 8.3 percent of Class A shares in Clearwire, equal to four percent total shares.
Clearwire filed with the FCC an opposition to Crest Financial's earlier petition to reconsider the Eagle River Holdings deal from 2012 which gave Sprint a controlling interest in Clearwire.
In Crest's petition, dated Jan. 4, the investment company, which owns an 8.3 percent stake in Clearwire, asked the FCC to revise its "pro forma" handling of the Eagle River deal on the basis that it gave Sprint de facto control of Clearwire.
In Clearwire's new opposition, dated Jan. 14, the Wi-Max provider states Crest's petition "provides no credible basis for the FCC to reverse its actions" and should be "promptly denied."
Sprint's bid to own 100 percent of Clearwire was accepted at $2.2 billion or $2.97 per share, which equaled the cap that Sprint majority stake holder Softbank placed on the deal.
The revised deal came after heavy protest from Clearwire shareholders, like Mount Kellett Capital Management LP, a firm holding a 3.6 percent stake in Clearwire. Mount Kellett called the deal, then at a proposed $2.90 per share, an "absolute outrage" in a letter to the Clearwire board. Joining the chorus in slamming the offer was Crest, which soon after purchased more shares of Clearwire, upping its stake in the company from from 6.6 percent of Class A shares to its current 8.3, equaling four percent of total shares.