Dish Network's (DISH) shopping spree of bankrupt companies looks set to continue with a $1.38B deal to buy TerreStar Networks (TSTRQ.PK). The acquisition is due to go to court approval on July 7 after no competing bids were received by yesterday's deadline, a source says.
Dish Network (DISH +2.3%) wins bankruptcy court permission to be the stalking horse bidder at an auction of the assets of Terrestar Networks (TSTRQ.PK), with an initial offer of $1.375B. Other bidders have until June 27 to submit offers for the satellite company; if competing bids are made, an auction will be held June 30.
Terrestar (TSTRQ.PK) receives a $1.4B offer from Dish (DISH) to buy its assets through a bankruptcy auction. Those Dish is competing against include a group of senior noteholders and MetroPCS (PCS), sources say. Terrestar's most sought-after assets include spectrum for 4G networks.
RBC Capital upgrades MetroPCS (PCS) to 'Outperform' from 'Sector Perform,' with a price target of $16. MetroPCS is rumored to be a potential buyer for $1B+ of assets from bankrupt TerreStar (TSTRQ.PK) as it works to upgrade its network. Shares +4.9% to $12.67.
MetroPCS (PCS) may buy more than $1B of assets from bankrupt satellite operator TerreStar (TSTRQ.PK), though sources caution other parties are also interested and no offers have been made yet. MetroPCS is looking to acquire more spectrum as it upgrades its network for high-speed data services.