Sprint Nextel Corp. (S)’s bid for Clearwire Corp. (CLWR), slated for an investor vote on May 21, won the endorsement of Egan-Jones Ratings Co., which joined Institutional Shareholder Services Inc. in supporting the deal. http://www.businessweek.com/news/2013-05-13/clearwire-says-egan-jones-has-joined-iss-in-endorsing-sprint-bid
“Based on our review of publicly available information on strategic, corporate governance and financial aspects of the proposed transaction, Egan-Jones views the proposed transaction to be a desirable approach,” the Haverford, Pennsylvania-based shareholder-advisory firm said today in a report.
The endorsement lends fresh support to the deal following ISS’s stamp of approval last week. The two firms disagreed with another proxy adviser, Glass, Lewis & Co., which recommended that investors vote no on Sprint’s $2.97-a-share offer. Sprint, which already owns slightly more than 50 percent of Clearwire, is trying to acquire the remaining stake for $2.2 billion.
“These recommendations affirm the conclusion of a rigorous multiyear strategic review and reinforce the board’s unanimous belief that this combination is the best strategic alternative for Clearwire’s minority stockholders, delivering certain, fair and attractive value,” Bellevue, Washington-based Clearwire said today in an e-mailed statement.
Sprint and Clearwire reached the deal in December after their four-year joint venture struggled to build a nationwide wireless Internet provider. Sprint, based in Overland Park, Kansas, is now planning to use Clearwire’s spectrum to bolster its own network.
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