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) [View news story]
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.
Senate Slams Apple On Tax Avoidance [View article]
Sending money to other countries is a part of our foreign policy, have nothing to do with Apple, and more often than not turns out to be a good investment. A growing, redistributive government inside is a far greater problem. Are you sure that got to the right website?
Loopholes allowed Apple (AAPL) to avoid $44B in U.S. taxes from 2009-2012, claims a Senate report released shortly after Apple's official statement. Though peers have also been accused of using offshore havens, the report argues Apple went further by creating a subsidiary (responsible for ~1/3 of profits from 2009-11) that used differences in U.S. and Irish law to have no residence whatsoever. Sen. Carl Levin calls this "the Holy Grail of tax avoidance." Also, while Apple claims $6B in FY12 federal tax payments, the report claims the real number is $2.4B if one backs out deferred payments on foreign cash (only paid if/when the cash is repatriated). [View news story]
Is iPhone among approved obamaphone types? Probably not. So, why should Apple subsidize its competitors?
"There are only four sources of high-quality maps," Google, Waze, Navteq, and TomTom (TMOAF.PK),says Rolfe Winkler, and given Facebook's rumored $1B acquisition of Waze, TomTom may become an attractive takeover target for the likes of Apple (AAPL) and others who, while able to drive a hard bargain on map licensing fees, may prefer to bid for the Netherlands-based company rather than worry that a rival will acquire it. TomTom trades at an EV/EBITDA ratio of just 6x. (From December: Rabobank puts AAPL/TomTom odds at 30%) [View news story]
Which service is Apple using now? If it is their own, there is no reason to buy anything. Whatever problems Apple maps may have now (and they are not as bad as some portray), it is probably much cheaper to simply fix them.
"There's no way" Sprint's (S) attempt to buy Clearwire (CLWR +0.6%) succeeds without a higher bid, says Taran Asset Management's Chris Gleason, one of many institutional Clearwire investors planning to vote against Sprint's $2.97/share offer at Tuesday's meeting. Reuters has uncovered investors holding 31% of Clearwire's public (non-Sprint-owned) shares who oppose the current deal; Sprint needs a majority of public shares to be voted in favor. Clearwire is trading 10% above Sprint's offer price, and 1% below Dish's $3.30/share offer price. (previous) [View news story]
What's the difference? At $2.97 Sprint will have to spend less that $1 billion to buy the remaining CLWR shares, while the cost of CLWR debt is over $4 billion. Given that some of that debt is owed to S, the remaining part should still be substantially more than $1 billion, or S would have simply forced CLWR into BK and got the company that way.
"There's no way" Sprint's (S) attempt to buy Clearwire (CLWR +0.6%) succeeds without a higher bid, says Taran Asset Management's Chris Gleason, one of many institutional Clearwire investors planning to vote against Sprint's $2.97/share offer at Tuesday's meeting. Reuters has uncovered investors holding 31% of Clearwire's public (non-Sprint-owned) shares who oppose the current deal; Sprint needs a majority of public shares to be voted in favor. Clearwire is trading 10% above Sprint's offer price, and 1% below Dish's $3.30/share offer price. (previous) [View news story]
CLWR bankruptcy will have devastating effect on S, and will likely derail SoftBank deal. So, if the dissenting CLWR shareholders are wiped out, they will take S with them. This is why I believe that S has no choice, but to up its bid for CLWR.
"There's no way" Sprint's (S) attempt to buy Clearwire (CLWR +0.6%) succeeds without a higher bid, says Taran Asset Management's Chris Gleason, one of many institutional Clearwire investors planning to vote against Sprint's $2.97/share offer at Tuesday's meeting. Reuters has uncovered investors holding 31% of Clearwire's public (non-Sprint-owned) shares who oppose the current deal; Sprint needs a majority of public shares to be voted in favor. Clearwire is trading 10% above Sprint's offer price, and 1% below Dish's $3.30/share offer price. (previous) [View news story]
If CLWR goes into BK, Sprint will lose its 50% stake, and instead of buying the other 50%, will have to buy all 100%, with no guarantee of success. In fact, S will be so weakened by CLWR BK that may not participate in the bidding at all.
Julian Robertson's Tiger Management unloaded the 42K Apple (AAPL) shares the firm still had going into Q1. Tiger, which has owned Apple for years, had pared its stake from 101K in Q4. On the other hand, Tiger initiated positions in Dunkin' Brands (DNKN - 546K shares), Monsanto (MON - 192K), McGraw Hill (MHP - 408K), and H&R Block (HRB - 849K). AAPL -1.1%. (13F) (Q4 hedge fund sales) [View news story]
"Our thesis is that AAPL has a terrific operating platform, engendering a loyal, sticky and growing customer base that will make repeated purchases ... Unfortunately, there have been a series of disappointments," writes David Einhorn in Greenlight Capital's Q1 letter, defending his bullishness on Apple (AAPL) after a 17% Q1 drop. He also defends his lightning-rod efforts to get Apple to remove Prop. 2 and change its capital structure. Vodafone (VOD - 21% Q1 gain) is another name Einhorn remains bullish on, believing "substantial value" could still be unlocked if a Verizon Wireless deal happens, and speculating AT&T might buy what's left of the carrier. (previous) [View news story]
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) [View news story]
Senate Slams Apple On Tax Avoidance [View article]
Senate Slams Apple On Tax Avoidance [View article]
Loopholes allowed Apple (AAPL) to avoid $44B in U.S. taxes from 2009-2012, claims a Senate report released shortly after Apple's official statement. Though peers have also been accused of using offshore havens, the report argues Apple went further by creating a subsidiary (responsible for ~1/3 of profits from 2009-11) that used differences in U.S. and Irish law to have no residence whatsoever. Sen. Carl Levin calls this "the Holy Grail of tax avoidance." Also, while Apple claims $6B in FY12 federal tax payments, the report claims the real number is $2.4B if one backs out deferred payments on foreign cash (only paid if/when the cash is repatriated). [View news story]
What Clearwire Shareholders Are Mulling Over This Weekend [View article]
"There are only four sources of high-quality maps," Google, Waze, Navteq, and TomTom (TMOAF.PK), says Rolfe Winkler, and given Facebook's rumored $1B acquisition of Waze, TomTom may become an attractive takeover target for the likes of Apple (AAPL) and others who, while able to drive a hard bargain on map licensing fees, may prefer to bid for the Netherlands-based company rather than worry that a rival will acquire it. TomTom trades at an EV/EBITDA ratio of just 6x. (From December: Rabobank puts AAPL/TomTom odds at 30%) [View news story]
"There's no way" Sprint's (S) attempt to buy Clearwire (CLWR +0.6%) succeeds without a higher bid, says Taran Asset Management's Chris Gleason, one of many institutional Clearwire investors planning to vote against Sprint's $2.97/share offer at Tuesday's meeting. Reuters has uncovered investors holding 31% of Clearwire's public (non-Sprint-owned) shares who oppose the current deal; Sprint needs a majority of public shares to be voted in favor. Clearwire is trading 10% above Sprint's offer price, and 1% below Dish's $3.30/share offer price. (previous) [View news story]
"There's no way" Sprint's (S) attempt to buy Clearwire (CLWR +0.6%) succeeds without a higher bid, says Taran Asset Management's Chris Gleason, one of many institutional Clearwire investors planning to vote against Sprint's $2.97/share offer at Tuesday's meeting. Reuters has uncovered investors holding 31% of Clearwire's public (non-Sprint-owned) shares who oppose the current deal; Sprint needs a majority of public shares to be voted in favor. Clearwire is trading 10% above Sprint's offer price, and 1% below Dish's $3.30/share offer price. (previous) [View news story]
"There's no way" Sprint's (S) attempt to buy Clearwire (CLWR +0.6%) succeeds without a higher bid, says Taran Asset Management's Chris Gleason, one of many institutional Clearwire investors planning to vote against Sprint's $2.97/share offer at Tuesday's meeting. Reuters has uncovered investors holding 31% of Clearwire's public (non-Sprint-owned) shares who oppose the current deal; Sprint needs a majority of public shares to be voted in favor. Clearwire is trading 10% above Sprint's offer price, and 1% below Dish's $3.30/share offer price. (previous) [View news story]
Danger Zone For This Week: Apple [View article]
Julian Robertson's Tiger Management unloaded the 42K Apple (AAPL) shares the firm still had going into Q1. Tiger, which has owned Apple for years, had pared its stake from 101K in Q4. On the other hand, Tiger initiated positions in Dunkin' Brands (DNKN - 546K shares), Monsanto (MON - 192K), McGraw Hill (MHP - 408K), and H&R Block (HRB - 849K). AAPL -1.1%. (13F) (Q4 hedge fund sales) [View news story]
Time To Change Investment Strategy On Wall Street [View article]
"Our thesis is that AAPL has a terrific operating platform, engendering a loyal, sticky and growing customer base that will make repeated purchases ... Unfortunately, there have been a series of disappointments," writes David Einhorn in Greenlight Capital's Q1 letter, defending his bullishness on Apple (AAPL) after a 17% Q1 drop. He also defends his lightning-rod efforts to get Apple to remove Prop. 2 and change its capital structure. Vodafone (VOD - 21% Q1 gain) is another name Einhorn remains bullish on, believing "substantial value" could still be unlocked if a Verizon Wireless deal happens, and speculating AT&T might buy what's left of the carrier. (previous) [View news story]
The Apple You Don't Know [View article]
The Bigger Picture Apple Investors Are Missing [View article]