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Clearwire (CLWR +12.5%) soars to to $3.10 on news of Sprint's (S -1.1%) $2.90/share offer. Wells...

Clearwire (CLWR +12.5%) soars to to $3.10 on news of Sprint's (S -1.1%) $2.90/share offer. Wells Fargo views Sprint's initial bid as a starting point for negotiations, and so, apparently, do many others. At $0.17/MHz.-pop, other spectrum deals have involved 50%+ premiums to the implied value of Sprint's offer, the firm notes. Though not 100% comparable, Verizon's cable spectrum purchases cost $0.68/MHz-pop.
Comments (3)
  • AggGrow
    , contributor
    Comments (191) | Send Message
     
    Didn't some investors pay $17 just a few years ago? $2.90 seems low - way low.

     

    Not sure I agree with Wells about starting point. If Sprint owns >50% of the shares/BoD seats, who else is going to step in to bid? Also, Management might see this as a slap, but Sprints stock price is equally undervalued, so swapping one for the other might not be seen as a bad thing.

     

    What to do...
    13 Dec 2012, 10:40 AM Reply Like
  • Headcoach
    , contributor
    Comments (431) | Send Message
     
    I agree...$2.90 is way too low....$6.00 is more like it as a starting point and then let's go from here.
    13 Dec 2012, 01:23 PM Reply Like
  • larry1135
    , contributor
    Comments (54) | Send Message
     
    I don't see it going to $6. Doesn't Sprint already have a controlling shares thru a recent purchase giving them a hand in the board room?
    15 Dec 2012, 10:37 AM Reply Like
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