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Dish (DISH) is all but officially abandoning its bid for Sprint (S). In a fresh update, the...

Dish (DISH) is all but officially abandoning its bid for Sprint (S). In a fresh update, the satellite TV provider says the revised SoftBank (SFTBF.PK) deal makes it "impracticable" for it to submit a new offer by Sprint's June 18 deadline, and that it will now focus its "efforts and resources" on the Clearwire (CLWR) tender offer. It increasingly looks as if SoftBank will end up with Sprint (vote on June 25), and Dish with a big minority stake in Clearwire that it could use to obtain a 4G network/spectrum deal with the 3 other parties in this saga. S -1.8% AH. CLWR +1.8%. (previous)
Comments (16)
  • How can Dish end up with a minority stake in Clearwire? If CLWR shareholders vote to sell the company to Dish, then Dish will end up with 100% of CLWR, and S will end up with a minority stake in Dish.
    18 Jun 2013, 07:58 PM Reply Like
  • sprint owns 50% of clearwire they can vote down a merger. Dish's minority stake gives it bargaining power for spectrum usage
    18 Jun 2013, 08:26 PM Reply Like
  • True, but S cannot vote down CLWR bankruptcy, which will blow S and the SoftBank deal out of the water.
    18 Jun 2013, 09:28 PM Reply Like
  • Sprint cannot let CLWR go bankrupt, DISH owns lots of CLWR bonds and they would be first in line in the event of a CLWR bankruptcy, not Sprint. Dish has Sprint by the throat. I think Ergen may offer even more of CLWR to stick it to Sprint and SoftBank. It is my opinion that the next thing that will happen is SoftBank and Sprint making a best "final" offer for the rest of CLWR shares at $4.80.
    19 Jun 2013, 10:26 AM Reply Like
  • It's up to Delaware law now. Sprint has publicly warned about the Dish request of seats and veto power days ago, I heard Dish brush off Sprint's declarations but why hasn't Clearwire made a statement? Seems Sprint will have the upper hand in court.
    19 Jun 2013, 08:30 PM Reply Like
  • Sprint owns 51% this dish deal is about a fast buck for Charlie the poker player. Sprint or softbank will end up with clearwire and clean out the double dealing management team. Charlie will learn about being A 25% minority owner.
    18 Jun 2013, 08:56 PM Reply Like
  • Ergen is just mucking up the scenario as there is really nothing he can realistically hope to gain. DISH, with it's mountain of debt, is the last partner either CLWR or S needs. CLWR minority share holders are just being bitter and would apparently rather screw the pooch than vote with Hess.
    18 Jun 2013, 09:30 PM Reply Like
  • I just don't see what dish can do with just spectrum. They'd have to build out and they would need all of clearwire to do that, and that would be a bottom-of-the-barrel gamble. WiMAX is dead!

     

    dish has racked up some serious debt and TV is moving to the internet, so the future is not all that bright. A decent uplink is essential for dish to survive, but spectrum is to uplink as raw copper is to a network - simply a raw material. 2-3% of what's needed.

     

    Charlie must be thinking of a Spectrum + WiMAX play? Could that be? Possibly!

     

    But if that were the case, I'm sure Hesse would sell him WiMAX plus Spectrum for far far far less than charlie is offering for clearwire, so maybe that's not it!

     

    I think Charlie is angling for a breakup fee! Good luck getting one from Clearwire.
    18 Jun 2013, 10:12 PM Reply Like
  • CLWR spectrum can be used for WiMax or LTE. Clearwire is in the process of converting the WiMax towers to LTE. Spectrum is the valuable item here and Ergen has been accumulating spectrum for a few years. It is my opinion that Ergen will get the interest in CLWR he wants, and then most likely go after acquiring LEAP. Sprints tie up with SoftBank will probably end up in Sprint becoming #4 in telecom from it's current position of #3
    19 Jun 2013, 10:31 AM Reply Like
  • Dont really know what Ergen is doing here. S is going to get 66 - 67% of CLWR (incl 50+% now, plus right of first refusal from others, plus the convertible loans). Crest has 8% +. Unless Crest changes position, Ergen will not get 25% or more just based on pure mathmatics.

     

    I assume this is why S is suing because Ergen is misleading everyone because it looks like he knows he will not get the 25%. He is just messing around. Even in the worse case, Ergen does get 25%. There is no way S will relinquish its governance rights and board seats to him. My experience tells me the court will not force majority shareholder to do something detrimental to its right. So what gives? This is just a big waste of time for everyone. And it is likely some of the current shareholders will get hurt eventually once Dish drops out (someone will get certainly hurt if the price drops materially when all the dust settles).
    18 Jun 2013, 11:13 PM Reply Like
  • Personally, I see a Sprint merger as a better integration of technologies and management. Sprint has been propping CLR up, financially as well as offering guidance for sometime now. Dish (Charlie) has bellied up to the poker table with borrowed monies, and S has called it's bluff. Will DISH have enough to build on CLW's spectrum base? I see nothing good happening for CWR with the DISH offer. The institutional investors get out with a little more $s than they would with a S merger.
    19 Jun 2013, 09:19 AM Reply Like
  • Why is Sprint down on this news? I thought SoftBank's initial offer for Sprint was $7.30 per share and then it was revised up to $7.65? I would think the stock should be in that range at least.
    19 Jun 2013, 09:51 AM Reply Like
  • exactly. just another case of buy the rumor, sell the news. This is a buying opp. shares will rebound as the news moment fades.
    19 Jun 2013, 10:09 AM Reply Like
  • Softbank's first offer was $7.30 cash (premium) for 55% and $5.25 (share price at the time I think) initial value new Sprint shares for the other 45% of shares, so the likely share price might of been $6.30 leading up to a approved merger in a static no synergy scenario. Not sure what the new numbers are on the second Softbank offer except for the $7.65 cash side and 78% ownership.
    19 Jun 2013, 09:04 PM Reply Like
  • What do you see the Sprint closing price being at the June 24 vote? I would guess that softbank is obligated to their new and last offer price even with Dish being out of it now. Is that correct?

     

    What will happen to Clearwire? Will sprint have to meet the $4.40 price or let Charlie's poker hand fail? I can see where Sprint matches the $4.40 price and Charlie can't do much more or Sprint just buying the additional 10 or 15% at a lower market rate as unless there is another bidder Sprint doesn't have to buy at the $4.40 on the open market and letting their new minority shareholder flap his gums in the wind.
    19 Jun 2013, 12:04 PM Reply Like
  • Jeb has a good point. I just can't easily figure out what the actual offer for Sprint is from Softbank. Mostly this feels like people selling on the news of No Dish bid and an analyst downgrade so there is more of a discount on the expected deal due to uncertainty.
    19 Jun 2013, 12:08 PM Reply Like
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