Sprint/Clearwire Acquisition Discussion (Formerly: Dish offer to acquire Clearwire for $4.40 per share in cash.)

[WiWavelength]

My only concern is that I'm fearful that if we go down to three providers in the US, that we become Canada South.

 

Oh no, you mean we would become...Amerida.

 

 

AJ

[bigsnake49]

My only concern is that I'm fearful that if we go down to three providers in the US, that we become Canada South. There's also a good chance Son could kiss CDMA2000 goodbye as the primary voice transmission if SoftBank also aquires T-Mobile and rolls it into Sprint. Son wants his device ecosystem and T-Mobile would move SoftBank closer to that.

It will take a while to integrate the two networks, bu they will eventually coalesce around LTE.

[Fraydog]

Oh no, you mean we would become...Amerida.

 

 

AJ

 

'MURICA x2.

 

[IamMrFamous07]

Any word on Clearwire postponing their shareholder vote?

[ericdabbs]

My only concern is that I'm fearful that if we go down to three providers in the US, that we become Canada South. There's also a good chance Son could kiss CDMA2000 goodbye as the primary voice transmission if SoftBank also aquires T-Mobile and rolls it into Sprint. Son wants his device ecosystem and T-Mobile would move SoftBank closer to that.

 

A Sprint/Tmobile tie up wont' happen for a few years anyways...don't worry.  Sprint is not going to engage in back to back mega mergers and will focus on Network Vision 2.0.  Besides you want Sprint and Tmobile to be remain separate as they both accumulate additional spectrum (PCS, AWS and 600 MHz) and each company needs to focus on their own "Network Vision" before they merge.  I see Leap and US Cellular get bought up before Sprint/Tmobile tie the knot.   

[ericdabbs]

Any word on Clearwire postponing their shareholder vote?

 

Clearwire postponed the shareholder vote because of the latest Dish counterbid offer.  No date has been set for the reschedule of the shareholder vote.

[Rawvega]

June 13, 2013 at 10:30 am. They aren't drawing on Sprint's $80M in financing for June and they are making their June loan payments, so no worries about a default anymore, if ever there were a legitimate about that.

[Fraydog]

June 13, 2013 at 10:30 am. They aren't drawing on Sprint's $80M in financing for June and they are making their June loan payments, so no worries about a default anymore, if ever there were a legitimate about that.

 

Not even Bancroft is that dumb, they don't want to lose their entire investment. 

[bigsnake49]

A Sprint/Tmobile tie up wont' happen for a few years anyways...don't worry.  Sprint is not going to engage in back to back mega mergers and will focus on Network Vision 2.0.  Besides you want Sprint and Tmobile to be remain separate as they both accumulate additional spectrum (PCS, AWS and 600 MHz) and each company needs to focus on their own "Network Vision" before they merge.  I see Leap and US Cellular get bought up before Sprint/Tmobile tie the knot.   

 The Softbank/ Sprint is not a merger. They invest in Sprint and get the appropriate number of seats on the board. No network integration, no integration of back end systems, no nothing. 

[DaQue]

Since there seems to be no limit to what Charlie Ergen will pay, I'm thinking this is a good course of action:

 

Sprint ups its offer for Clearwire to $5.40. Then Charlie will up his to $6 or $6.40. Then Sprint allows Charlie to over pay at the final price and take it's minority ownership in Clearwire. Sprint still buys out the Intel, Bright House, Comcast stocks that they have already agreed to sell to Sprint.

 

Charlie Ergen then grossly overpaid for his minority stake and leveraged his company to do it. Sprint will still have majority control over the company. Then come November 30th, the shareholders vote to change to a simple majority for purchase. Softbank offers to buy the whole thing out, Sprint votes in favor...Charlie is screwed.

 

I'm no financial guru, and do not understand all the implications. This may not be possible. But if it is, this is what I would do. It backs Charlie into a corner that he cannot do anything with.

 

Otherwise, the only other options is for Sprint just to stand down, let Dish buy a minority stake in Clearwire and then deal with the devil...or, have SoftBank make an offer for Dish. I kind of hope for the latter just so Charlie could get a taste of his own medicine and be put on defense for once and distract him from an offensive.

 

Robert via Nexus 7 using Tapatalk 4 Beta

Can't Intel and the others wimp out of the deal now that there is an offer for $1 more?

[S4GRU]

 

 

Since there seems to be no limit to what Charlie Ergen will pay, I'm thinking this is a good course of action:

 

 

Sprint ups its offer for Clearwire to $5.40. Then Charlie will up his to $6 or $6.40. Then Sprint allows Charlie to over pay at the final price and take it's minority ownership in Clearwire. Sprint still buys out the Intel, Bright House, Comcast stocks that they have already agreed to sell to Sprint.

 

 

Charlie Ergen then grossly overpaid for his minority stake and leveraged his company to do it. Sprint will still have majority control over the company. Then come November 30th, the shareholders vote to change to a simple majority for purchase. Softbank offers to buy the whole thing out, Sprint votes in favor...Charlie is screwed.

 

 

I'm no financial guru, and do not understand all the implications. This may not be possible. But if it is, this is what I would do. It backs Charlie into a corner that he cannot do anything with.

 

 

Otherwise, the only other options is for Sprint just to stand down, let Dish buy a minority stake in Clearwire and then deal with the devil...or, have SoftBank make an offer for Dish. I kind of hope for the latter just so Charlie could get a taste of his own medicine and be put on defense for once and distract him from an offensive.

 

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

Can't Intel and the others wimp out of the deal now that there is an offer for $1 more?

They could. But I don't think it's likely. But it doesn't much matter at this point. Sprint needs a good chunk of those other minority shareholders. I don't think they've got the others anymore with Dish's latest deal.

 

Robert from my Nexus 4 using Tapatalk 4 Beta

 

 

[ChadBroChillz]

Can't Intel and the others wimp out of the deal now that there is an offer for $1 more?

 

I think it is worth noting that the other two investors are Bright House and Comcast. They would have as much, if not more to lose by Dish winning. Dish getting the ability to bundle services would be a major blow to them. They would rather lose the 1 dollar than have a blow to their main business. The only way I see them flopping is if Dish offered something astronomical like 100 per share. 

 

Intel could wimp out, but I think intel is pushing this deal, because they want to break into the smartphone game. Softbank/Sprint would likely "owe them a favor" for their support. If intel could get support from SB/S, which would be the third largest smartphone purchaser, they could see a jump in manufactures willing to partner with them. 

[Fraydog]

If this blows up and Dish gets Sprint I'm pretty sure this would be the Sprintiest thing that could have happened to Sprint.

[juant87]

Great..

http://www.twice.com/articletype/news/clearwire-postpones-shareholder-vote-consider-dish-bid/107185

Sent from my iPhone5 using Tapatalk 2

[Mobilesolutions]

 

I think it is worth noting that the other two investors are Bright House and Comcast. They would have as much, if not more to lose by Dish winning. Dish getting the ability to bundle services would be a major blow to them. They would rather lose the 1 dollar than have a blow to their main business. The only way I see them flopping is if Dish offered something astronomical like 100 per share. 

 

Intel could wimp out, but I think intel is pushing this deal, because they want to break into the smartphone game. Softbank/Sprint would likely "owe them a favor" for their support. If intel could get support from SB/S, which would be the third largest smartphone purchaser, they could see a jump in manufactures willing to partner with them. 

 

You made a lot of excellent points here.  I wish AMD would get into the mobile world 

 

If this blows up and Dish gets Sprint I'm pretty sure this would be the Sprintiest thing that could have happened to Sprint.

 I would cry.  

[marioc21]

Well, looks like Sprint is cranking up the noise.  Not sure if this has any impact on what the minority shareholders are thinking though.

 

http://finance.yahoo.com/news/sprint-sends-letter-clearwire-board-130000894.html

 

 

Sprint Sends Letter to Clearwire Board Calling DISH Proposal for Clearwire Not Actionable and a Violation of Delaware Law

Sprint (NYSE:S) announced today that it has sent a letter to the Clearwire Board of Directors noting that the DISH proposal to acquire Clearwire is "not actionable," as certain provisions violate Delaware law, Clearwire's certificate of incorporation or the rights of the parties to the existing Clearwire Equityholders' Agreement (EHA), including Sprint.

....

[S4GRU]

Well, looks like Sprint is cranking up the noise. Not sure if this has any impact on what the minority shareholders are thinking though.

 

http://finance.yahoo.com/news/sprint-sends-letter-clearwire-board-130000894.html

 

 

 

 

Sprint Sends Letter to Clearwire Board Calling DISH Proposal for Clearwire Not Actionable and a Violation of Delaware Law

Sprint (NYSE:S) announced today that it has sent a letter to the Clearwire Board of Directors noting that the DISH proposal to acquire Clearwire is "not actionable," as certain provisions violate Delaware law, Clearwire's certificate of incorporation or the rights of the parties to the existing Clearwire Equityholders' Agreement (EHA), including Sprint.

....

Sprint is just making it clear that the purchase proposal from DISH is unactionable without Sprint's approval. All these ridiculous terms DISH put in the offer require changes to governance that will require current stockholder approval. Any changes without current stockholder approval would be a violation of law.

 

So Sprint is just reminding everyone that this latest offer is garbage, it is unactionable, as it requires Sprint approval. And Sprint says they will not approve. And approving it would be suicide of the majority shareholder. Sprint has given Billions of dollars in cash and spectrum assets and has every right to protect those assets from the Pirate Plunderer Charlie Ergen.

 

Sprint's even goes as far as to say, "Isn't it convenient that DISH made such a proposal, that it knows cannot be acted on, and will not be acted on, at the last minute before a Clearwire vote?"

 

Now that DISH is being called out for making an offer that is unactionable at the last minute, there should be an investigation by the SEC. Dish is making itself a competitor of Sprint nowadays, and is now doing anything and everything to disrupt the process. They intentionally made a bad offer that could not be accepted to extend out the clock. This deal, other than raising the amount, is the worst deal of all. It's time for the SEC to smack Charlie's hand.

 

Robert via Nexus 7 using Tapatalk 4 Beta

[JeffDTD]

I read the whole thing. The last 4 paragraphs are pure magic. Proudest moment? The reveal of the author: Daniel R. HESSE. Hesse has stepped up and put his poker personally into the fire. LOVE!

 

Sent from my Note II. Its so big.

 

 

[juant87]

Just read the letter too. Can this be enough to thwart DISH from both proposals?

 

 

Sent from my iPhone5 using Tapatalk 2

[JeffDTD]

Just read the letter too. Can this be enough to thwart DISH from both proposals?

 

 

Sent from my iPhone5 using Tapatalk 2

Its enough to thwart the clear board from recommending Dish's proposal in its current form. However, I expect a snarky response from Dish in the next 48 hours or less as well as another revised proposal.

 

 

 

It wont, however, change the tune of any of thr rogue investors. Nor will increase the chances of sprint gaining approval.

 

Sent from my Note II. Its so big.

 

[S4GRU]

It just prolongs a stalemate.  Dish's current proposal cannot be approved by Clearwire.  And Sprint will never vote for it.  Dish says its current price offer is contingent on these changes to governance, which cannot and won't happen.  Essentially making the offer void.

 

The minority hold out greedholders will just get louder in the cries that Sprint is preventing them from making unjustified sums.  Dish knows this.  I actually think this is Dish's goal.  To build anger and discontentment against Sprint/SoftBank and delay Sprint from being able to close a deal.  This is actually their best strategy.

 

However, I feel that since Dish is now becoming a Sprint competitor by getting into the wireless market, they are making competing bids just to disrupt their competitor from doing business.  This would be against the law.  If Dish makes another unactionable bid at the last hour in the future, the SEC should get involved.

 

Robert

[bucdenny]

Crest Financial Demands That Sprint Allow Clearwire to Pursue a Competitive Bidding Process. LOL 

 

http://www.prnewswire.com/news-releases/crest-financial-demands-that-sprint-allow-clearwire-to-pursue-a-competitive-bidding-process-209941181.html

[S4GRU]

Crest Financial Demands That Sprint Allow Clearwire to Pursue a Competitive Bidding Process. LOL

 

http://www.prnewswire.com/news-releases/crest-financial-demands-that-sprint-allow-clearwire-to-pursue-a-competitive-bidding-process-209941181.html

 

If Dish was being competitive with their offers, they would be pursuing the largest shareholder. Going after a small and vocal minority group of shareholders is not competitive at all.

 

Crest knew the limitations of being a minority shareholder with a majority shareholder that holds more than 50% and has a vested interest in the outcome. These are not small personal investors. They knew the risk all along.

 

Why would Sprint give up its powers, its financial stake and spectrum resources just because there is some bitchy minority shareholders who want more money? Where was Crest when Clearwire needed more money and about to bankrupt?

 

Sprint just needs to run out the clock and show these minority shareholders just how much risk they have.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

[Fraydog]

Sprint and Dan Hesse also need to get the SEC involved on Crest. A hedge fund with 0 skeletons in their closet? I'd love to see that. Sprint melting Crest into a million pieces of molten rubbish would send a pretty clear message to the world.

 

At this point, I don't care if Sprint destroys Crest to the point where careers and lives go down the drain. Frankly, that's what Crest deserves.

[Rawvega]

Crest is almost more annoying than Charlie. I understand that they want top dollar for their shares. That's fine, we are a capitalist society after all. The thing is though, while they're screaming at the top of their lungs about the rights of the minority shareholders, it's like they've conveniently forgotten that the majority shareholder, Sprint, also has rights. Sprint has as much right to do what's in their best interest as Crest does. You play the cards that you're dealt. They're just mad because Sprint has a much stronger hand in this game. That sucks for Crest, but it is what it is. Sprint contributed spectrum to Clearwire, did Crest? Sprint bankrolled Clearwire when they needed it to keep them out of bankruptcy, did Crest? Their arguments are getting redundant and they weren't that persuasive the first time around

 

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