Report: Sprint Deal Unlikely to Get Past Clearwire Shareholders

[S4GRU]

Sprint just increased its offer to $3.40 per share.

 

Robert via Nexus 7 with Tapatalk HD

[jefbal99]

GRR!!!  So fricking annoying

[jefbal99]

Sprint just increased its offer to $3.40 per share.

 

Robert via Nexus 7 with Tapatalk HD

Wow, I saw maybe a small increase, but not $0.43/share, that is huge!!!

[Rawvega]

 

Sprint Submits Increased Offer for Clearwire

Increased Offer of $3.40 Per Share Represents Significant Premium to Unaffected Clearwire Trading Price

Offer Provides Clearwire Shareholders with Enhanced Value

Transaction is Best Strategic Alternative for Clearwire and Stockholders

Press Release: Sprint Nextel – 10 minutes ago

 

 

 

 

 

 

 

 

 

 

 

OVERLAND PARK, Kan.--(BUSINESS WIRE)--

 

Sprint (NYSE:S) today announced that it has submitted an increased offer to the Board of Directors of Clearwire (CLWR) to acquire the approximately 50 percent stake in the company it does not currently own for $3.40 per share, valuing Clearwire at $10.7 billion. This increased offer represents a 14 percent premium to Sprint’s previous offer of $2.97 announced on Dec. 17, 2012 and a 162 percent premium to Clearwire's closing share price the day before the Sprint-SoftBank discussions were first confirmed in the marketplace on Oct. 11, 2012 when Clearwire was also speculated to be a part of that transaction. The offer represents Sprint’s best and final offer.

 

The revised offer demonstrates Sprint’s commitment to closing the Clearwire transaction and improving its competitive position in the U.S. wireless industry. Sprint is uniquely positioned to leverage Clearwire’s 2.5 GHz spectrum assets. Sprint’s Network Vision architecture should allow for better strategic alignment and the full utilization and integration of Clearwire’s complementary 2.5 GHz spectrum assets, while achieving operational efficiencies and improved service for customers as the spectrum and network is migrated to 4G LTE standards.

 

The revised offer has been submitted to the Clearwire Board of Directors and is subject to its formal approval. Clearwire’s Special Committee and Board have repeatedly cited the merger as the best strategic alternative for the company and its minority stockholders. In addition, Clearwire has received commitments from Comcast Corp., Intel Corp and Bright House Networks LLC, who collectively own approximately 26 percent of Clearwire’s shares not affiliated with Sprint, to vote their shares in support of the transaction.

 

Sprint’s proposal provides a clear path forward for Clearwire and the merger provides attractive value for shareholders of both companies.

 

Upon approval by the Clearwire Board of Directors, the transaction is subject to customary closing conditions, including regulatory approvals and the approval of Clearwire’s stockholders, including the approval of a majority of Clearwire stockholders not affiliated with Sprint or SoftBank. SoftBank has consented to the increased offer to acquire the remaining stake of Clearwire.

 

 

http://finance.yahoo.com/news/sprint-submits-increased-offer-clearwire-130000221.html

[WiWavelength]

Sprint just increased its offer to $3.40 per share.

And with that capital gain, Robert is buying a round for The Forums. I recommend you order the "Charlie Ergen." It is some generic alcohol mixed with bitters.

 

AJ

[S4GRU]

 

Sprint just increased its offer to $3.40 per share.

 

And with that capital gain, Robert is buying a round for The Forums. I recommend you order the "Charlie Ergen." It is some generic alcohol mixed with bitters.

 

 

AJ

 

That is a gross add of long term wealth of $2,150 added with this new offer. I may actually be able to retire one day. Now if they can just accept and close the deal.

 

Robert via Nexus 7 with Tapatalk HD

[Rawvega]

I think some of the opposition will relent. I suspect that Crest will still want to hold out for a higher offer. I doubt they'll have the votes now though.

[marioc21]

My $.90/share investment in Clearwire is looking like pure genius.  Wish I'd had some real money to invest.  Anyway the cash from my 12 shares will buy me a couple burritos at Chipotle.  

[marioc21]

I think some of the opposition will relent. I suspect that Crest will still want to hold out for a higher offer. I doubt they'll have the votes now though.

 

I imagine Crest will essentially give up their proxy fight.  They're not stupid.  They know Clearwire is going bust without Sprint/Softbank's money.  This was all about trying to get the offer above the going share price.  

[marioc21]

BTW, the vote has now been rescheduled for May 30 at 9:30am.

 

http://finance.yahoo.com/news/clearwire-receives-increased-offer-sprint-130200978.html

[bigsnake49]

At the conclusion of this or soon there after, I want to see a plan of what Sprint aims to do with the clearwire network and the EBS spectrum leases. I don't for a moment believe that Sprint needs all that spectrum, unless they have a new business plan of becoming a fixed broadband provider and/or offer OTT video and not just to tablets/phones. If they do offer OTT video/video on demand, then I will be one of their first customers and ditch cable (if their signal can penetrate my Faraday cage of a condo). However, I do not expect them to do that. What I expect them to do is merge with T-Mobile and let Dish have Clearwire's network/EBS spectrum. Then Dish can have their triple play/VOD/OTT video play.

 

The other question then becomes, what does Dish do with all of their spectrum, given that they just bid for Lightsquared's spectrum? Do they offer combined satellite/cellular voice on the L-spectrum, video for phones/tablets on the S-band and fixed broadband/settop OTT on the EBS spectrum?

Edited May 21, 2013 by bigsnake49

[bucdenny]

FYI for peeps with Clearwire stock.

 

http://allthingsd.com/20130521/sprint-ups-bid-for-clearwire-to-outbid-dish-network/?KEYWORDS=Clear

[irev210]

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.

 

 

Sprint realized it had no choice but to boost its price, said

Roger Entner, an analyst at Recon Analytics.

     “It was a game of chicken and they blinked,” said Entner,

 

That was my line, Mr Entner...

[bigsnake49]

and for the always entertaining musings of one Tim Farrar:

 

http://tmfassociates.com/blog/2013/05/20/i-am-serious-and-dont-call-me-shirley/

 

who was not aware of todays news but pegs the range of the Sprint increased offer.

Edited May 21, 2013 by bigsnake49

[Rawvega]

http://finance.yahoo.com/news/sprint-raises-clearwire-offer-not-141955114.html

 

 

Taran Asset Management principal Chris Gleason said that he would not vote for a $3.40-per-share offer and was still hoping for a price range of $5 to $7 per share.

"We know the value is higher," said Gleason, whose firm holds more than 1 million Clearwire shares.

A portfolio manager at a top 20 shareholder was also unimpressed with the new price tag and said that keeping the shares as a minority holder would be a better option.

"It's not going to get my vote," said the person who asked not to be named due to a lack of authorization to speak to the media. "I guess Clearwire isn't as important to them as it is to me. We'll be fine being minority shareholder. They should have come with a real bid or not come at all."

 

 

The dude talking $5-$7 is delusional. While it would be good for me financially if that came to fruition, it's not gonna happen. It's just not. Even though this is supposedly their last, best and final offer, I think Sprint may go as high as $4 to get it done, but even that is shaky.

[flycuban]

http://www.forbes.com/sites/steveschaefer/2013/05/21/as-softbank-and-dish-fight-over-sprint-it-raises-offer-for-clearwire/

 

[marioc21]

http://finance.yahoo.com/news/sprint-raises-clearwire-offer-not-141955114.html

 

 

The dude talking $5-$7 is delusional. While it would be good for me financially if that came to fruition, it's not gonna happen. It's just not. Even though this is supposedly their last, best and final offer, I think Sprint may go as high as $4 to get it done, but even that is shaky.

 

I'll take this as a sign that the new offer price will probably succeed.

 

 

Crest Financial protests Clearwire vote delay, opposes new bid

 

May 21 (Reuters) - Major Clearwire Corpshareholder Crest Financial on Tuesday said it was opposed to Sprint Nextel Corp's newly raised bid for the company.

Crest also protested Clearwire's decision to postpone a shareholder vote, which had been scheduled for Tuesday. Crest has been soliciting proxies to oppose the deal.

 

 

http://www.reuters.com/article/2013/05/21/clearwire-sprint-crest-idUSL2N0E21IT20130521?feedType=RSS&feedName=bondsNews&rpc=43

 

The official press release from crest: http://finance.yahoo.com/news/crest-financial-protests-clearwires-delay-173300957.html

 

They must be delusional if they think they can still much more than the new offer.

 

This wsj story quotes a couple of analysts saying that Sprint/Softbank's latest offer is likely enough to sway enough minority shareholders.  

 

http://online.wsj.com/article/SB10001424127887324102604578496863977600882.html

[ChadBroChillz]

I do not think Sprint was trying to convince those guys. Supposedly Sprint and Clearwire were working with Mount Kellett and other shareholders to raise their bid. The group has 18.2 % of Clearwire's public shares.  That would give Sprint 44.2 % of the minority vote without looking at the smaller investors. 

 

http://www.bloomberg.com/news/2013-05-03/clearwire-investor-mount-kellett-enlists-group-to-oppose-sprint.html

[marioc21]

The new vote has been rescheduled again. It is now on May 31 10:30am PT. 

 

http://finance.yahoo.com/news/clearwire-special-meeting-stockholders-rescheduled-173500875.html

[irwinshere]

Get'r done already!

[koiulpoi]

http://www.forbes.com/sites/joanlappin/2013/05/17/sprint-in-a-panic-over-losing-vote-has-clearwire-working-the-phones/

 

Who in the world is Joan Lappin and why does she have such a bass ackwards, horribly negative view of this whole situation? Defending Ergen? Claiming Clearwire is worth loads more? What?

 

also:

 

Don’t lose sight of Utah Sen. Orrin Hatch’s comments this week that the transfer of U.S. spectrum to foreign ownership with ties to the Chinese who keep trying to hack our websites both commercial and government is not in the national interest..  Hatch is drawing attention to the close relationship between Softbank and Huawei which provided Son’s equipment in Japan.  This is not an insignificant issue even though Son has said he will not use Huawei. Canada raised this issue as well.  As the world goes mobile and telecommunications moves from copper wire or fiber optic cable to the airwaves,  in my long expressed view in this blog, ownership should remain in the United States. 

Anyone who tries to tie China and Japan together, I have no respect for, and is a nationalist fool.

[Rawvega]

Have you read all of her blog pieces regarding the Clearwire situation? She comes off as very arrogant and likes to tout her credentials, but at this point I only read her stuff to laugh at some of the moronic things that she says.

[Fraydog]

http://www.forbes.com/sites/joanlappin/2013/05/21/softbanks-son-and-his-sprint-puppet-hesse-blink-raise-bid-for-clearwire-by-dimes/

 

I replied in the comments... I'm going to be intrigued to see if/how she responds. 

[Rawvega]

http://www.forbes.com/sites/joanlappin/2013/05/21/softbanks-son-and-his-sprint-puppet-hesse-blink-raise-bid-for-clearwire-by-dimes/

 

I replied in the comments... I'm going to be intrigued to see if/how she responds. 

 

Very well written. I wonder if she'll come back with a snarky response, make an attempt at deflection or flat out ignore your response. 

[JeffDTD]

http://www.forbes.com/sites/joanlappin/2013/05/21/softbanks-son-and-his-sprint-puppet-hesse-blink-raise-bid-for-clearwire-by-dimes/

 

I replied in the comments... I'm going to be intrigued to see if/how she responds. 

 

 

She is a beligerantly delusional sow if she truly believes Dan Hesse is the reason Sprint's stock price plummeted.  To be the expert she purports herself to be, she clearly knows nothing about sprint's culture or the financial or cultural challenges it has faced. 

 

She can't be trusted and she's not worth the clicks or comments from any of us.  It will clearly just entice her to be even shitaeous.