Shareholder worries about Sprint Nextel’s growing involvement with Clearwire Corporation (CLWR)

A shareholder in Clearwire Corporation(NASDAQ:CLWR), Mount Kellett Capital Management LP, warned the board members of the company about the growing powers of Sprint Nextel Corporation(NYSE:S) upon the company, in terms of shares. The New York based investment agency is shareholder in Clearwire, with 7.3 percent of the stocks, and Sprint Nextel has recently acquired more stocks of Washington Company, to stand with 50.8 percent of all the shares. Mount Kellett wrote a letter to Clearwire on Thursday, in which it asked the board members of the company to be wary of the growing control of the shares by Sprint Nextel. The company warned Clearwire of how it could negatively affect the value of the company.

The CFO of Mount Kellett, Jonathan Fiorello, write in the letter, demanding more clarity from Sprint Nextel, about its intentions, with regard to the future of Clearwire. The private investment firm demanded a clear answer from the company. It suggested that the company should either formally agree to not buy up more stocks or take up the seats of the board, or the company should produce a tender offer, which would allow the other shareholders to realize the stakes with respect to Clearwire. The letter which was sent to Clearwire, was filed, on the very same day, by the company, with the Securities and Exchange Commission, or the SEC.

This growing insecurity displayed by Mount Kellett, comes after Sprint Nextel acquired more stocks in October. This happened just after SoftBank Corp., the Japan-based wireless carrier has announced its decision to get 70 percent of the shares of Sprint Nextel. This has been causing Mount Kellett a lot of worry, which is why the firm is demanding clarification regarding Sprint Nextel’s role in Clearwire.

Clearwire, however, has stated that despite the growing stakes in the company, Sprint Nextel has no intentions of controlling the company in any way, and the number of board members representing the company shall remain the same, which is, seven of the thirteen board seats for the directors will be given to Sprint Nextel. However, it looks like Mount Kellett is not satisfied with the answer, and they are demanding clarity for all the lesser shareholders.