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$4.20 with your "$1 premium" would still be a signficantly depressed sale price to what Sprint stock was originally issued at and what many minority stockholders may have later purchased at (up to $10/share).  As previously cited, we live in nation of laws that aim towards "fairness" (language used by courts ruling on corporate law).  Why would anybody invest in a company in which the controlling owner (SoftBank) can take advantage through market price manipulation?  There have been major court cases regarding the attempted squeeze outs of minority stockholders.  Please see below.

 

Legal explanation:  http://www.pepperlaw.com/publications/cash-outs-of-minority-stockholders-a-delaware-perpective-2000-07-11/

 

Source law:  http://delcode.delaware.gov/title8/c001/sc09/

 

I've been a part of 2 class action lawsuits where this happened. Company was sold in full to SanDisk for one, majority shareholder took it private in the other. We got nothing in the latter instance after going to court, the court agreed that the current market price when the sale happened (which had been tanking) was the "fair value" at the time, and the majority stake holder was paying a 5% premium (This would be what a $0.20 premium in the case of Sprint!?). Case Dismissed.

 

For the former instance, SanDisk was ordered to increase their 10% premium by 10% (to 11%) and issue checks to all class participants, I think I got like $81 in the mail well over a year after the deal closed. WOOHOO

 

Lost significant money in both cases. SoftBank could easily do the same, be sued, and send you a check for $0.57 (or whatever insignificant sum the Judge decides) and all would be good in the eyes of the law, or the case should just as easily get dismissed all together.

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I've been a part of 2 class action lawsuits where this happened. Company was sold in full to SanDisk for one, majority shareholder took it private in the other. We got nothing in the latter instance after going to court, the court agreed that the current market price when the sale happened (which had been tanking) was the "fair value" at the time, and the majority stake holder was paying a 5% premium (This would be what a $0.20 premium in the case of Sprint!?). Case Dismissed.

 

For the former instance, SanDisk was ordered to increase their 10% premium by 10% (to 11%) and issue checks to all class participants, I think I got like $81 in the mail well over a year after the deal closed. WOOHOO

 

Lost significant money in both cases. SoftBank could easily do the same, be sued, and send you a check for $0.57 (or whatever insignificant sum the Judge decides) and all would be good in the eyes of the law, or the case should just as easily get dismissed all together.

 

This.  Unless it could be proven that Softbank, in their role of majority owner, was intentionally trying to depress the stock value with the goal of going private, there would not be much of a case.  The common shareholders rarely win in these cases.

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Here is some good investment news about Softbank buying some additional shares of Sprint :

 

http://www.wsj.com/articles/softbank-increases-sprint-stake-by-nearly-87-million-1439424844

 

I'm glad to see this, which hopefully means more about Softbank having renewed interest in Sprint.

I bet this is directly related to their earnings and the info that Masa wanted out. Trying to calm fears.

 

 

Sent from my SM-N910T using Tapatalk

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I bet this is directly related to their earnings and the info that Masa wanted out. Trying to calm fears.

 

 

Sent from my SM-N910T using Tapatalk

 

Or he sees a bargain... 

 

In a statement, SoftBank said it “is enthusiastic about Sprint’s prospects. The SoftBank Group and Sprint teams have been working closely together on Sprint’s network strategy to enhance Sprint’s competitiveness and reduce its capital expenditures and operating costs.”

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Does anyone here have experience using Softbank in Japan? Are they the "Verizon" of Japan?

I think they're rated number 2 in performance. I remember reading that they had a disadvantage until they implemented that "platinum band" (900Mhz spectrum). That and they rolled out B41 in a lot of places, via small cells and macro sites. They might be number 1 there now but I'd have to take a look.

 

EDIT: According to OpenSignal, they're rated number 1 in Japan.

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I've been a part of 2 class action lawsuits where this happened. Company was sold in full to SanDisk for one, majority shareholder took it private in the other. We got nothing in the latter instance after going to court, the court agreed that the current market price when the sale happened (which had been tanking) was the "fair value" at the time, and the majority stake holder was paying a 5% premium (This would be what a $0.20 premium in the case of Sprint!?). Case Dismissed.

 

For the former instance, SanDisk was ordered to increase their 10% premium by 10% (to 11%) and issue checks to all class participants, I think I got like $81 in the mail well over a year after the deal closed. WOOHOO

 

Lost significant money in both cases. SoftBank could easily do the same, be sued, and send you a check for $0.57 (or whatever insignificant sum the Judge decides) and all would be good in the eyes of the law, or the case should just as easily get dismissed all together.

Thank you for sharing your experience.  Another case study is Sprint's buyout of the minority stake of Clearwire.  Minority shareholders did not escalate to outright litigation, but the majority owner Sprint ended up paying out $5/share in July 2013 instead of the original $2.97/share it tried to get in December 2012.

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Here is some good investment news about Softbank buying some additional shares of Sprint :

 

http://www.wsj.com/articles/softbank-increases-sprint-stake-by-nearly-87-million-1439424844

 

I'm glad to see this, which hopefully means more about Softbank having renewed interest in Sprint.

It makes sense to buy back more of your own company "on the cheap"; much better practice than many companies that buy back shares when their stock price is already inflated.  I do want to know how close Softbank will get to the 85% ownership threshold.

 

Right now, SoftBank's open market purchases of Sprint have put a $4 floor on the stock price.  Next desired announcement is that Marcelo Claure also bought millions more shares.

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It makes sense to buy back more of your own company "on the cheap"; much better practice than many companies that buy back shares when their stock price is already inflated. I do want to know how close Softbank will get to the 85% ownership threshold.

 

Right now, SoftBank's open market purchases of Sprint have put a $4 floor on the stock price. Next desired announcement is that Marcelo Claure also bought millions more shares.

Claure is a bag holder right now. He already demonstrated he believes in a turn around by buying millions of dollars worth of shares.

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Claure is a bag holder right now. He already demonstrated he believes in a turn around by buying millions of dollars worth of shares.

Claure has a $1 billion net worth.  He can and should buy more Sprint!  :phone:

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The market is down but Sprint is up over 4.50 this morning. Cannot be the new iPhone anytime upgrade. Any other news coming?

All throughout this morning, there have been repeated multi-million dollar puchases of Sprint stock...

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SoftBank bought another 4.5 million Sprint shares yesterday.

 

Meanwhile, SoftBank President Nikesh Arora will use his own money to buy $483 million of SoftBank stock.

 

http://www.bloomberg.com/news/articles/2015-08-19/softbank-s-arora-to-buy-483-million-of-stock-as-personal-bet-

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Seems that Dracula just took a bite out of Brian Nichols in the comments. lol

 

How Sprints latest moves can accelerate the path to bankruptcy.

 

 

TS

Not only does it have to staff the service but it must purchase the fleet of vehicles, pay for gas, and then have a lot of unproductive time, as employees travel from point A to point B.

Did he completely miss the fact that a third party is handling all the logistics for Direct2you and that Sprint is only providing the employees?
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