Sprint (S) +15.6%, Clearwire (CLWR) -2.8%, Dish Network (DISH) -1.7%, and DirecTV (DTV) -1.1%, as the Street mulls the implications of Dish's $25.5B offer for Sprint (S). Dish, which has been looking for a partner for its 4G spectrum, claims a merger will result in $13B in cost/capex synergies, and yield a company with 20% EBITDA growth. Dish would fund the $17.3B cash portion of the deal using $8.2B in existing cash + debt, and foresees debt ratings of B1/B+. Sprint shareholders would own 32% of the company. No one ever accused Charlie Ergen of thinking small. (offer letter) (Dish fact sheet) (Clearwire spectrum offer) (Dish/Clearwire) [View news story]
CLWR should be moving up on this offer. Analysts haven't figured it out yet.
Apple Should Rehire Ron Johnson For Its Own Good [View article]
You do not know this about Cook. He hasn't done anything wrong yet, and may gain a lot of weight as Apple unfolds its strategy and product line. Why be a part of the mob, manipulated by the hedgies?
On April 8, Clearwire (CLWR) received an offer from a "strategic buyer" to buy spectrum leases "generally located in large markets that cover approximately 5 billion MHz-POP" for a price of $1B-$1.5B, less the present value of the leases. Clearwire, which made the disclosure in a new 14A, says it will evaluate the offer. The disclosure comes on a day when Bloomberg reports Dish Network, whose $3.30/share offer for Clearwire remains outstanding, approached Deutsche Telekom about possibly merging with T-Mobile USA. CLWR +2.5% AH to $3.34. [View news story]
So, leaving aside all those technicals details, is it a good offer or not, and at how much does it value the entire CLWR spectrum holdings?
Clearwire (CLWR) receives yet another alternative financing proposal from a money manager. Hedge fund Aurelius Capital is offering Clearwire $80M in convertible debt financing as a replacement for the funds it's receiving from Sprint (S). Last week, Crest Financial offered Clearwire $240M in convertible debt financing. Though taking Sprint's money and still officially supporting its $2.97/share buyout offer, Clearwire still hasn't made a final decision on Dish Network's $3.30/share bid. [View news story]
It is getting real difficult for CLWR board to accept $2.97 offer.
Apple (AAPL -1.2%) roundup: 1) The budget for Apple's "spaceship" HQ has soared to nearly $5B from less than $3B, BloombergBusinessweek reports. Apple has already pushed back its move-in date to 2016. 2) France Telecom (FTE) CEO Stephane Richard says the cost-sensitivity of consumers is hurting demand for the iPhone and other high-end phones. Of course, FTE and other European carriers have been up in arms over iPhone subsidies. 3) Explaining why he considers Apple a "storage company," Lazard's Edward Parker points out Apple sells flash memory on higher-capacity iDevices at an 80%-90% incremental margin. [View news story]
Apple should cancel the HQ project. It is being built in the wrong state, and may be even in the wrong country.
Disgruntled Clearwire (CLWR) investor Crest Financial is offering Clearwire $240M in convertible debt financing as an alternative to the $80M/month in financing being provided by Sprint (S). Crest, which considers Sprint's $2.97/share deal to acquire Clearwire insufficient, argues its funds would leave Clearwire with enough capital to build 2K 4G LTE cell sites and handle this year's interest payments. Clearwire closed at $3.28 today, 10% above Sprint's offer price. [View news story]
Crest's primary interest in this matter is CLWR shareholders.
More on the Goldman downgrade of Apple (AAPL): Believing an imminent dividend hike/share repurchase could set a floor under the stock price, Goldman is less optimistic about the "timing and impact" of the next product cycle - needed if the stock is going to be an outperformer over the coming year. "The stock's upside potential should be more limited than we previously anticipated." Shares +0.25% premarket. [View news story]
Documents reviewed by WSJ suggest Panasonic (PC) is under investigation for bribery. A retention notice from the company's legal department instructed a California subsidiary which markets in-flight entertainment products to preserve documents "concerning any benefits or gifts provided by Panasonic … to any airline employee or government officials." Another document allegedly says the company has been subpoenaed.[View news story]
That was what came to my mind, too. Other companies, like IBM, have used bribes as an important part of their business strategy for years.
The Race For Clearwire's Assets Is Entering The Homestretch [View article]
They did not emerge, because as soon as S takes CLWR over, FCC will force the former to sell some of the spectrum. This is why none of the phone companies attempted CLWR bids, because they are secret partners with Sprint in eliminating the only real wireless ISP threat to the phone companies while sharing the proceeds.
The ARPU for France Telecom's (FTE -3.5%) French mobile ops us expected to fall 12%-13% in 2013, a decline even greater than 2012's 10%, says CEO Stephane Richard. Perhaps hoping to score political points, Richard blames upstart Free Mobile, which has been undercutting incumbents while leveraging FTE's network. But he could just as easily blame the destructive impact Internet services are having on voice and text revenue for European carriers. [View news story]
Apple Should Pay Its Tax Bill [View article]
Sprint (S) +15.6%, Clearwire (CLWR) -2.8%, Dish Network (DISH) -1.7%, and DirecTV (DTV) -1.1%, as the Street mulls the implications of Dish's $25.5B offer for Sprint (S). Dish, which has been looking for a partner for its 4G spectrum, claims a merger will result in $13B in cost/capex synergies, and yield a company with 20% EBITDA growth. Dish would fund the $17.3B cash portion of the deal using $8.2B in existing cash + debt, and foresees debt ratings of B1/B+. Sprint shareholders would own 32% of the company. No one ever accused Charlie Ergen of thinking small. (offer letter) (Dish fact sheet) (Clearwire spectrum offer) (Dish/Clearwire) [View news story]
Apple Should Rehire Ron Johnson For Its Own Good [View article]
Apple Should Rehire Ron Johnson For Its Own Good [View article]
Apple Should Rehire Ron Johnson For Its Own Good [View article]
On April 8, Clearwire (CLWR) received an offer from a "strategic buyer" to buy spectrum leases "generally located in large markets that cover approximately 5 billion MHz-POP" for a price of $1B-$1.5B, less the present value of the leases. Clearwire, which made the disclosure in a new 14A, says it will evaluate the offer. The disclosure comes on a day when Bloomberg reports Dish Network, whose $3.30/share offer for Clearwire remains outstanding, approached Deutsche Telekom about possibly merging with T-Mobile USA. CLWR +2.5% AH to $3.34. [View news story]
Clearwire (CLWR) receives yet another alternative financing proposal from a money manager. Hedge fund Aurelius Capital is offering Clearwire $80M in convertible debt financing as a replacement for the funds it's receiving from Sprint (S). Last week, Crest Financial offered Clearwire $240M in convertible debt financing. Though taking Sprint's money and still officially supporting its $2.97/share buyout offer, Clearwire still hasn't made a final decision on Dish Network's $3.30/share bid. [View news story]
Alcatel-Lucent Cannot Bear The Weight Of Today's World [View article]
Apple (AAPL -1.2%) roundup: 1) The budget for Apple's "spaceship" HQ has soared to nearly $5B from less than $3B, BloombergBusinessweek reports. Apple has already pushed back its move-in date to 2016. 2) France Telecom (FTE) CEO Stephane Richard says the cost-sensitivity of consumers is hurting demand for the iPhone and other high-end phones. Of course, FTE and other European carriers have been up in arms over iPhone subsidies. 3) Explaining why he considers Apple a "storage company," Lazard's Edward Parker points out Apple sells flash memory on higher-capacity iDevices at an 80%-90% incremental margin. [View news story]
Disgruntled Clearwire (CLWR) investor Crest Financial is offering Clearwire $240M in convertible debt financing as an alternative to the $80M/month in financing being provided by Sprint (S). Crest, which considers Sprint's $2.97/share deal to acquire Clearwire insufficient, argues its funds would leave Clearwire with enough capital to build 2K 4G LTE cell sites and handle this year's interest payments. Clearwire closed at $3.28 today, 10% above Sprint's offer price. [View news story]
More on the Goldman downgrade of Apple (AAPL): Believing an imminent dividend hike/share repurchase could set a floor under the stock price, Goldman is less optimistic about the "timing and impact" of the next product cycle - needed if the stock is going to be an outperformer over the coming year. "The stock's upside potential should be more limited than we previously anticipated." Shares +0.25% premarket. [View news story]
Documents reviewed by WSJ suggest Panasonic (PC) is under investigation for bribery. A retention notice from the company's legal department instructed a California subsidiary which markets in-flight entertainment products to preserve documents "concerning any benefits or gifts provided by Panasonic … to any airline employee or government officials." Another document allegedly says the company has been subpoenaed. [View news story]
The Race For Clearwire's Assets Is Entering The Homestretch [View article]
The Race For Clearwire's Assets Is Entering The Homestretch [View article]
The ARPU for France Telecom's (FTE -3.5%) French mobile ops us expected to fall 12%-13% in 2013, a decline even greater than 2012's 10%, says CEO Stephane Richard. Perhaps hoping to score political points, Richard blames upstart Free Mobile, which has been undercutting incumbents while leveraging FTE's network. But he could just as easily blame the destructive impact Internet services are having on voice and text revenue for European carriers. [View news story]