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Sprint (S) raises its offer for Clearwire (CLWR) to $3.40/share ahead of today's shareholder...

Sprint (S) raises its offer for Clearwire (CLWR) to $3.40/share ahead of today's shareholder vote on a $2.97/share offer, which was widely expected to be shot down. The revised offer, which trumps Dish's (DISH) $3.30/share bid and has been sent to Clearwire's board for review, is said to have the support of Comcast, Intel, and Bright House, who collectively own 26% of Clearwire shares not held by Sprint. Nonetheless, Clearwire +6.1% to $3.46, above the offer price. Sprint +1.1%. (previous)
Comments (6)
  • The Deep Value Investor
    , contributor
    Comments (277) | Send Message
     
    Lol, Sprint saw that they would lose the vote. I think they will have to offer more than $3.40 to be able to get the majority of the minority to vote in favor of $3.40 since they already pissed away six months keeping CLWR in the $3 range. I think they may need to increase the offer to $3.75 or $4.00 since even before today CLWR had already traded higher than the new $3.40 offer.
    21 May 2013, 09:14 AM Reply Like
  • BigAppleGuy
    , contributor
    Comments (124) | Send Message
     
    Sprint is making it easy for CLWR share holders to vote yes by topping the Dish bid. It is a psychological measure to do it on vote day. Many shareholders will see it is clearly (no pun intended) the best offer to save them from bankruptcy and having most common wiped out for a total loss. So basically it's Sprint @ 3.40 or a total loss. What would you pick?
    21 May 2013, 09:26 AM Reply Like
  • milehr
    , contributor
    Comments (475) | Send Message
     
    Total loss? Even if CLWR assets were sold and bondholders were paid, something would be left for shareholders, I am sure, and may be more than what S offered.
    21 May 2013, 09:59 AM Reply Like
  • william B
    , contributor
    Comments (26) | Send Message
     
    They are deeply in debt, nothing would be left for shareholders!!!!!
    21 May 2013, 10:37 AM Reply Like
  • zanajohn1
    , contributor
    Comments (76) | Send Message
     
    Postponement of the vote means S lost, so let’s speculate on what’s next.

     

    The first point to realize is that the lawsuits filed regarding violation of CLWR fiduciary duty toward Cl A shareholders have gained strength. That means that it remains a threat to anybody's acquisition of S until the lawsuits are settled/decided (1,2 years?).

     

    So with that in mind, how’s this: Crest offers to drop its lawsuit in exchange for S giving up operational control of CLWR?

     

    If S doesn't agree they can face years of litigation w/o spectrum (same timeline for LTE2 offer to be implemented, IF it succeeds) while the wireless broadband market moves on — S continues as a spectrum starved entity.

     

    Crest is suing for an independent CLWR. Let’s assume a CLWR libre occurs, is there a business case?

     

    CLWR can in consultation with the FCC conduct a private auction of some of its spectrum, which in about a year when the rules are finalized and the auction held the market demand for unlimited data will be so strong that CLWR will be able to fetch spectrum prices driving Cl A up over $30/sh (again).

     

    CLWR in consultation with DOJ/FBI (Softbank will not be allowed to control CLWR spectrum, we like Sen. Hatch) negotiates with the rest of the world to be the US “gateway” operator for worldwide clear channel 2.5 TD-LTE traffic, becoming the US owned “operating company” for all 2.5 traffic into and out of the US. It’s retail brand expands and builds out nationwide. Cl A shares go up to $60/sh and split.

     

    What’s not to like? Remember, the only way to satisfy the developing market demand for the "heavy tonnage, video enabled 4G world" is through CLWR pipes.
    21 May 2013, 11:37 AM Reply Like
  • biffster7199
    , contributor
    Comments (64) | Send Message
     
    I couldn't agree more zana. Personally I think that IF either the Clearwire(CLWR) buyout and/or Sprint(S) takeover are completed, within a year's time investors will be looking back and saying how Softbank "stole" the U.S. 2.5GHz market for the paltry sum of 25 or so billion dollars.
    22 May 2013, 12:34 AM Reply Like
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