Hedge fund firm Aurelius Capital Management has offered Clearwire Corp. $80 million in financing to lure the wireless service provider away from Sprint Nextel’s offer.
Reuters reported that Washington-based Clearwire’s board special committee would “evaluate the offer to determine what, if any, action to take.”
The proposal by Sprint, which is a 51% shareholder of Clearwire, would buy the rest of Clearwire it does not own. Clearwire minority shareholder Crest Financial also made a $240 million financing proposal last week for $240 million in debt financing.
Aurelius argued in its statement released Tuesday that while its financing proposal would be substantially the same as the financing being provided by Sprint, their notes would be exchangeable for Clearwire stock at $2.00 per share rather than at $1.50 per share.
Aurelius is also urging Clearwire to accept its proposal within two weeks so the companies would have time to complete their paperwork before May.
Based in New York, Aurelius focuses on high-profile distressed debt cases.