Jump to content

Report: Sprint Deal Unlikely to Get Past Clearwire Shareholders


cletus

Recommended Posts

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:

  • Like 2
Link to comment
Share on other sites

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

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

 

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.

Link to comment
Share on other sites

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.

  • Like 3
Link to comment
Share on other sites

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.

  • Like 3
Link to comment
Share on other sites

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.

  • Like 2
Link to comment
Share on other sites

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

  • Like 1
Link to comment
Share on other sites

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!!

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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

  • Like 2
Link to comment
Share on other sites

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

Link to comment
Share on other sites

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

Link to comment
Share on other sites

shareholders like myself

Maybe there would be a few fries left in the bag for you.

 

AJ

  • Like 1
Link to comment
Share on other sites

I have 5,000 shares of CLWR myself.

 

Robert via Samsung Note II via Tapatalk

 

 

  • Like 2
Link to comment
Share on other sites

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.

  • Like 1
Link to comment
Share on other sites

 

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.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.

  • large.unreadcontent.png.6ef00db54e758d06

  • gallery_1_23_9202.png

  • Posts

    • Since this is kind of the general chat thread, I have to share this humorous story (at least it is to me): Since around February/March of this year, my S22U has been an absolute pain to charge. USB-C cables would immediately fall out and it progressively got worse and worse until it often took me a number of minutes to get the angle of the cable juuuussst right to get charging to occur at all (not exaggerating). The connection was so weak that even walking heavily could cause the cable to disconnect. I tried cleaning out the port with a stable, a paperclip, etc. Some dust/lint/dirt came out but the connection didn't improve one bit. Needless to say, this was a MONSTER headache and had me hating this phone. I just didn't have the finances right now for a replacement.  Which brings us to the night before last. I am angry as hell because I had spent five minutes trying to get this phone to charge and failed. I am looking in the port and I notice it doesn't look right. The walls look rough and, using a staple, the back and walls feel REALLY rough and very hard. I get some lint/dust out with the staple and it improves charging in the sense I can get it to charge but it doesn't remove any of the hard stuff. It's late and it's charging, so that's enough for now. I decide it's time to see if that hard stuff is part of the connector or not. More aggressive methods are needed! I work in a biochem lab and we have a lot of different sizes of disposable needles available. So, yesterday morning, while in the lab I grab a few different sizes of needles between 26AWG and 31 AWG. When I got home, I got to work and start probing the connector with the 26 AWG and 31 AWG needle. The stuff feels extremely hard, almost like it was part of the connector, but a bit does break off. Under examination of the bit, it's almost sandy with dust/lint embedded in it. It's not part of the connector but instead some sort of rock-hard crap! That's when I remember that I had done some rock hounding at the end of last year and in January. This involved lots of digging in very sandy/dusty soils; soils which bare more than a passing resemblance to the crap in the connector. We have our answer, this debris is basically compacted/cemented rock dust. Over time, moisture in the area combined with the compression from inserting the USB-C connector had turned it into cement. I start going nuts chiseling away at it with the 26 AWG needle. After about 5-10 minutes of constant chiseling and scraping with the 26AWG and 31AWG needles, I see the first signs of metal at the back of the connector. So it is metal around the outsides! Another 5 minutes of work and I have scraped away pretty much all of the crap in the connector. A few finishing passes with the 31AWG needle, a blast of compressed air, and it is time to see if this helped any. I plug my regular USB-C cable and holy crap it clicks into place; it hasn't done that since February! I pick up the phone and the cable has actually latched! The connector works pretty much like it did over a year ago, it's almost like having a brand new phone!
    • That's odd, they are usually almost lock step with TMO. I forgot to mention this also includes the September Security Update.
    • 417.55 MB September security update just downloaded here for S24+ unlocked   Edit:  after Sept security update install, checked and found a 13MB GP System update as well.  Still showing August 1st there however. 
    • T-Mobile is selling the rest of the 3.45GHz spectrum to Columbia Capital.  
    • Still nothing for my AT&T and Visible phones.
  • Recently Browsing

    • No registered users viewing this page.
×
×
  • Create New...