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While Sprint (S -1.3%) slumps on a report SoftBank (SFTBF.PK) is talking with Deutsche Telekom...

While Sprint (S -1.3%) slumps on a report SoftBank (SFTBF.PK) is talking with Deutsche Telekom (DTEGY.PK) about buying its 74% stake in T-Mobile USA (TMUS +4.1%) should the Sprint deal falter, Dish (DISH +1.5%) has spiked higher, as investors take the report as a sign SoftBank would rather abandon its Sprint efforts than significantly raise its bid. Sources tell Reuters SoftBank and DT have been talking since last year, but that talks "intensified" following Dish's $25.5B offer for Sprint. Clearwire (CLWR +3.3%) has also moved higher, and is now $0.02 above Dish's $4.40/share offer price. (previous)
Comments (9)
  • SafisKusai
    , contributor
    Comments (236) | Send Message
     
    pretty sure charlie ergen just screwed himself. still don't really understand how dish can afford all of this. If he wanted a partnership for spectrum he should have come to the table with that proposal, now he'll be entering into an industry without real savings with capex needs that will severely hurt DISH AND Sprint. Sad.
    7 Jun 2013, 04:07 PM Reply Like
  • milehr
    , contributor
    Comments (501) | Send Message
     
    SoftBank wants Sprint, and especially Clearwire. They will raise their bid to 25 billion, at some point, to match Dish's offer.
    7 Jun 2013, 04:09 PM Reply Like
  • neuvis
    , contributor
    Comments (5) | Send Message
     
    agree - this is exactly what you would expect Softbank to do... posture that they are speaking with Others and then bid up -- I think they will make a best and final offer of $8 or $9 next week
    9 Jun 2013, 10:41 AM Reply Like
  • zanajohn1
    , contributor
    Comments (76) | Send Message
     
    The issues that allowed CLWR to separate from Sprint:
    1. National Security (Done)
    2. Crest Lawsuit (Still Active)
    3. DISH (Still Active)

     

    Next: Resignations and "lawyering up".
    7 Jun 2013, 04:21 PM Reply Like
  • AggGrow
    , contributor
    Comments (195) | Send Message
     
    To Milehr - Softbank wants an in to the US market. Sprint is the best path to that, and Clearwire has compatible spectrum, but on their own, each is not worth overpaying for AND Sprint still owns > 50% of Clearwire, so...

     

    DT is an eminently viable alternative, and if they make that acquisition, Dish will likely extract from CLWR which will go belly up and Sprint will likely buy it from the bondholders for very little. Not bad for Sprint at all.

     

    I agree with Safis. CE is playing russian roulette in an act of desperation. Sprint obviously wants nothing to do with him, but he has to try.

     

    Until this all plays out, I sadly cannot be long. Sprint, on the other hand, appears to be in excellent position no matter what happens, although the best outcome would be a speedy Softbank deal.
    7 Jun 2013, 05:37 PM Reply Like
  • Dave"T"
    , contributor
    Comments (31) | Send Message
     
    Agree with Agg and Safis. CE is too ambitious for DISH's own good.
    The trusts holding out for more, obviously, are not considering what is best for CLWR.
    8 Jun 2013, 09:00 AM Reply Like
  • Truth4Once
    , contributor
    Comments (16) | Send Message
     
    This is what they wanted to happen(Dish,that is)...it was orchestrated....not by SoftBank but the others...let me find out Dish employees have a stake in TMobile.
    8 Jun 2013, 12:38 PM Reply Like
  • Truth4Once
    , contributor
    Comments (16) | Send Message
     
    Not in for semantics......Dish knew of the TMobile talks and is obviously trying to sway SoftBank that way....no one can see this? Where's Greenspan when you need him?
    8 Jun 2013, 12:44 PM Reply Like
  • biffster7199
    , contributor
    Comments (82) | Send Message
     
    I have a feeling this will all become far more interesting after the keynote address by Tim Cook at Apple's WWDC 2013.
    8 Jun 2013, 07:06 PM Reply Like
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