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Report: Sprint Deal Unlikely to Get Past Clearwire Shareholders


cletus
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http://www.foxbusiness.com/technology/2013/05/17/report-sprint-deal-unlikely-to-get-past-clearwire-shareholders/

 

According to an analysis by Reuters, investors that own a combined 31% stake in Clearwire have said in statements or interviews with the news service that they are unsatisfied with the current proposal up for a vote on May 21.

At least 50% of Clearwire’s minority shareholders must vote in favor of the deal for it to go forward.

 

Meanwhile Clearwire doesn't have the financing to continue it's network upgrades :rolleyes:

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And Clearwire recently told their shareholders essentially that if they did not approve the deal, they were going to skip their next debt payment and possibly go into bankruptcy.

 

Robert

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It ends up being a big mess when shareholders and bondholders and management all have conflicting interests.

 

I think the logical step that SoftBank will take, despite past rhetoric, will be to sweeten the pot. At that point, Clear shareholders will likely vote in acceptance of the deal. In other words, I'm not overly concerned.

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It ends up being a big mess when shareholders and bondholders and management all have conflicting interests.

 

I think the logical step that SoftBank will take, despite past rhetoric, will be to sweeten the pot. At that point, Clear shareholders will likely vote in acceptance of the deal. In other words, I'm not overly concerned.

 

Or wait until September or October when Sprint's agreement expires and then they only need 65% of the vote. Sprint already has those votes.

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Or wait until September or October when Sprint's agreement expires and then they only need 65% of the vote. Sprint already has those votes.

 

Wouldn't bankruptcy affect those dynamics quite drastically? Why not just raise the offer, avoid bankruptcy, outbid Charlie, and be on the way, rather than having to deal with the messy and retracted process of bankruptcy?

 

That literally makes no sense.

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If the deal is voted down and anything else happens that causes Uncle Char-Char to think his bid for Sprint isn't going to be successful, he is going to barrel in with another bid for Clear and I'm certain it will be very, very high...... Not because it makes sense, but because if he fails to get Sprint, he will stop at nothing to complicate sprint's future in every way possible.

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If the deal is voted down and anything else happens that causes Uncle Char-Char to think his bid for Sprint isn't going to be successful, he is going to barrel in with another bid for Clear and I'm certain it will be very, very high...... Not because it makes sense, but because if he fails to get Sprint, he will stop at nothing to complicate sprint's future in every way possible.

 

That's precisely why SoftBank should up their bid.

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If Son thinks there is a chance that Sprint will accept Dish's offer or they will end up in a bidding war, what purpose does an incremental increase in the Clear bid (that pulls just enough support for passage) accomplish? Some of the Clear shareholders, Crest specifically, are out there babbling on about wanting $7 or more a share. If Charlie is the Sprint winner, let Crest win as many other shareholders over as they can... $7? Heck, why not $10!

 

Once (and if) the Clear bid fails, Clear then becomes another debt obligation for Sprint= 1) Prevent bankruptcy or up the offer until 2) the bylaws can be amended and other acquisition avenues pursued. Either way, Clear continues to be a debt obligation and another anchor around the neck of a potentially merged "Dish/Sprint" that Charlie won't have the $$$ or borrowing capacity to afford.

 

And of course, Sprint could simply vote against a Dish acquisition of Clear, no matter how high the price. If the Clear bid fails, i'm in support of giving the shareholders a megaphone and flooding the market with insane demands. It puts Charlie in an even more uncomfortable position.

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And of course, Sprint could simply vote against a Dish acquisition of Clear, no matter how high the price. If the Clear bid fails, i'm in support of giving the shareholders a megaphone and flooding the market with insane demands. It puts Charlie in an even more uncomfortable position.

 

Megaphone. Maybe that would be a good rebranding for Sprint if Ergen somehow wins this bidding war.

 

;)

 

AJ

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Somehow I believe that IF Dish pulls this off all that Charlie will have is spectrum, a huge pile of debt,and potentially an unfinished rollout of NV... for some reason I just can't see the real motive here: who really wants to watch TV or movies on a mobile device?  That business model, IMHO, implies a huge paradigm shift in how we use our smart phones..possibly I'm showing my age here!!

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The whole thing is a giant game of chicken.

 

Sprint loses a bunch of equity as well if Clearwire goes into BK.

 

It's a lose/lose if the result is BK.  The bigger question is - who has more to lose?  Sprint or the minority equity holders?

 

At this point, even Verizon has suggested, by making an offer on some clearwire spectrum, that in BK situation they would bid on assets.

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Somehow I believe that IF Dish pulls this off all that Charlie will have is spectrum, a huge pile of debt,and potentially an unfinished rollout of NV... for some reason I just can't see the real motive here: who really wants to watch TV or movies on a mobile device?  That business model, IMHO, implies a huge paradigm shift in how we use our smart phones..possibly I'm showing my age here!!

 

Yea at which point he dismantles Sprint and sells off its spectrum to its secret partner Verizon/AT&T.

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The whole thing is a giant game of chicken.

 

Sprint loses a bunch of equity as well if Clearwire goes into BK.

 

 

If Clearwire were to go into BK, that would be quite the whopper.  It could cause a feeding frenzy, but I wonder who would be left holding the bag.

 

AJ

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Yea at which point he dismantles Sprint and sells off its spectrum to its secret partner Verizon/AT&T.

I think you've hit on it..Dish might even have the FCC over a barrel on this as it would not want the spectrum to go unused and it probably could not force Dish to employ it..Dish makes a ton on the sale and 4 carriers is whittled down to three..I guess it could go down like this...huge gamble on the part of Dish

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If Clearwire were to go into BK, that would be quite the whopper.  It could cause a feeding frenzy, but I wonder who would be left holding the bag.

 

AJ

shareholders like myself

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Clearwire will not go into bankruptcy. Sprint will fund them until October with convertible bonds. Again, I am of the rather firm opinion that Sprint should sell the EBS leases and Clearwire network to Dish, when Dish comes up with an offer that Sprint likes.

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Well, that's never a good sign.  It's interesting that these minority shareholders have convinced themselves that there are any other viable suitors for Clearwire.  Or that Sprint, being the majority shareholder would ever vote to sell to anyone else.

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