M & A Law Prof Blog

Editor: Brian JM Quinn
Boston College Law School

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Monday, March 28, 2011

Clearwire jilted by their bankers

Preeta Das and Gina Chon have a story in this morning's WSJ highlighting the trouble Clearwire had with its bankers, Goldman Sachs.

Clearwire hired Goldman last summer to help the company's independent directors explore ways to raise more capital and evaluate a potential sale to Sprint or T-Mobile USA, people familiar with the matter said.

But the agreement didn't preclude Goldman from leaving Clearwire to work for Sprint. When Sprint sought Goldman's advice earlier this year, it was not specifically tied to an acquisition of Clearwire, according to these people.

They note that while Clearwire was considering selling to Sprint, Sprint said in a statement last December that it "continues to hold discussions with Clearwire regarding further investment in the company but has no plans at present to acquire Clearwire."

 Banker conflicts are increasingly getting the attention of courts.  Vice Chancellor Laster recently dinged Del Monte's board for its poor process - mostly involving its bankers. 

-bjmq

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