If you take any of sprints advanced funding, that voids my 3.30 offer... So, clwr needs funding to stay afloat...so why are they not making a decision, one way or the other? Is there a hidden message with all this. The volume says nothing exciting going on or even contemplated...
Sprint's offer of monthly advances is in loanshark territory. The Clearwire executives are being cautious given the shareholders uprisings coupled with the Dish bid. These execs are in bed with Sprint but are worried (my take) that they could be dragged to court, face charges of even be convicted ( again my viewpoint). They are not aggressively marketing some spectrum! Why? Uh probably because that could raise one or two billion dollars easily and no longer be held hostage by Sprint. This is my view but others have similar views about the relationship between Clearwire and Sprint. Ergen can overbid his Dish bid but feels no need to just yet. Son of SoftBank likes the coffee for fifteen cents deal of grossly underbidding for Clearwire. OK he is not directly bidding but he controls SoftBank which told Sprint 2.97 a share is the limit. AT &T and Verizon can make bid's for Clearwire above Dish's bid but why do it now. If they wait a few months and then overbid the two offers on the table the Clearwire execs will have to consider their offers. So it's in their interest to wait as they move the treat bowl away from SoftBank and Sprint which screws up the takeover of Sprint and delays their LTE buildout. This is a multi player chess game.
I can only think of one reason. This could be a well planned collusion between the three. Inject a new plot into the stew to delay the decision making while setting a base price to thwart critics and establishing current lawsuits as baseless. The fiduciary duty of the board committee by taking its time (a.k.a. delaying) and carefully examining any offers have the consequence of starving the company from additional funding thereby starving shareholders. The theory goes when you are hungry enough even a Kraft dinner will start to taste like choice cuts, which means $2.97 will start to look really-really good at this point.
The reason why they are talking their time is they (Softbank/Sprint) are buying common on they open market. They have been sitting on the bid since the deal was announced. The plan is quite simple as they know they cannot aquire enough minority interest to win the vote with such a low offer of 2.97. The will simply buy up as much stock that they can flush out of individual investors on the open market. Once they have flushed shares out then and only then will they raise their offer price to make the institiutional investors happy and to prevent lawsuits. If they aquire a significant amount of common shares even if they were to raise the price to ~$8 it would not cost them that much considering all the shares they are purchasing sub $3.30.
Understand the lowball offer and the amount of time they are dragging this out is a well orchastrated event. If you are wise enough to hold until the very end you will be amazingly awarded.
Sentiment: Strong Buy
Your statement I do believe is correct. Between the B of D's and upper mgt there was gross collusion. Somebody's pockets are being stuffed. The decision to accept the 2.97/share was too rapid for it to be a decision to protect the 50.5% of the shares not owned by Sprint. Keep in mind, Spectrum analysts have speculated the spectrum owned by CLWR has a value up to 30 billion dollars which would make the pps in the 30 dollar neighbor hood.
Little people, the big boys are taking care of themselves, not us. Think about it.
Collusion. Under the table dealing. As I heard a politician say while under the influence of a little too much to drink, 'your hand is always under the table before you vote' . This was a state politician.
How do you think upper mgt gets such golden parachute severance packages for okaying an M & A?