Sprint (NYSE: S) today issued the following statement in response to Clearwire’s announcement that a special committee of Clearwire’s board of directors is considering a proposed transaction from DISH.
“Sprint believes its agreement to acquire Clearwire, which offers Clearwire shareholders certain and attractive value, is superior to the highly conditional DISH proposal.
“In contrast, the DISH proposal includes a series of interdependent commercial agreements, debt and equity purchases and spectrum sales, which together with the other conditions required by DISH to complete the transaction, makes the proposal not viable. In addition, the DISH proposal would require Sprint to voluntarily waive rights that it holds as a stockholder of Clearwire and that it possesses through various vendor and customer contracts that significantly predate Sprint’s proposed acquisition of the remainder of Clearwire. Sprint does not intend to waive any of its rights and looks forward to closing the transaction with Clearwire and helping consumers across the country realize the benefits of this combination.”
Sprint has one major hang up and that is the FCC and Gov. Now we have a American company looking at CLWR not the House of the Rising Son to take control of all this U.S. Spectrum and it just may be the stopper to the Son 70% take over of Sprint. The FCC and Gov. could allow the 25% that is in the law books and if Son excepts that or not will be the main Deal Breaker.
Will Son merge with Sprint for only 25% and not have control? if not Sprint is back to square one no money lot a debt and maybe the lost of Clear as that deal will also fall
Ohiomale, you've got it. The approval of this deal is no certain thing. Plus, you've now got a lawsuit from a major holder who thinks CLWR is getting ripped offf, and they are not going to give up. There are plenty of roadblocks. I wanted to invest in this stock again (missed a lot on the January upswing), but I see this as a risky venture. It's just that everyone is myopically-focused on the $7.50 a share on 55%. What if Sprint is $4.00? This could happen before the Softbank deal happens, perhaps very close to before. Then where will you be? Pumpers are SO convinced that we see higher and higher prices. Look at the charts. This was up to $6 before, and then turned around and dropped, dropped, dropped. This can repeat itself, with even more catalysts now.