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Clearwire Corporation (CLWRD) Message Board

  • mnwimttn mnwimttn Jan 29, 2013 11:27 AM Flag

    More excitement to come

    This says it all.
    "Dish has decided not to file the document because it remains in its own negotiations over Clearwire, Dow Jones said, citing the company. Dish remains in talks to acquire Clearwire or other assets, Dow Jones said."

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    • LOL! That says nothing at all new. DISH made the offer and Clearwire convened a special committee of the BOD to review it. DISH's offer and follow-on letters have said they are open to discussions and questions... it would be nutty if they weren't.

      Since then, DISH has stated to the FCC that they need more time to further their discussions with Clearwire.

      What could happen? I think it doubtful, as I've said repeatedly, that DISH's offer would/could be accepted at face value. However, what is possible is for Clearwire, in concert with DISH and in context with FCC deliberations, to posit that the value placed on the company is too low or that some other arrangement could be made that is more satisfactory to minority shareholders while also benefitting Sprint-SB in reducing the burden of some of the debt and fulfilling the use of the spectrum. That type of position could have appeal to both the FCC and DOJ as it would dilute the concerns of foreign ownership. Since Clearwire has been the one making use of Huawei and ZTE, that part of it would fall in all their combined laps.

      The situation has been for no new 'deal' or upping in current offers to come forward since DISH's. There also is not anything to directly show that there is reason to believe Sprint-SB and DISH are close to burying their hatchets to join hands. However, the course of events do tend to narrow the process somewhat imo towards that being possible. The reason why that course would be good for shareholders comes down to cost/benefit analysis for use of the spectrum: If some arrangement is derived at in which DISH, perhaps AT&T and others plus Sprint-SB make use of CW's spectrum, then the average costs will be lower, more capital will swamp in, thus upping the value of Clearwire's spectrum and operations. Sprint wants to use parts, DISH wants to use parts. AT&T and others, if not willing to put money in the hopper now, at least want that as a future option. As that is what these separate companies say they want, then why can't there be some way to find a middle ground? If they do, then CW moves up in value without any one company having to bite off more than they want and are willing to pay for... and the price should be higher. Maybe $4.50 will again look like a reasonable target.

      Thus far, however, Sprint remains pretty much in the drivers seat with all else being the side shows.

      • 1 Reply to teamrep
      • It means what it says. Dish is still negotiating and they still want to aquire.

        I've listed below other analyst comments from multiple articles. I wish we could still post links here. You'll find others have a different opinion than you.

        Dish argued that the industry would be better served if a part of the spectrum was sold to a new entrant, like itself, rather than an incumbent, like Sprint. The filing noted that Dish’s “offer contemplates precisely such an outcome.” Dish Network announced a $2.28 billion bid for Clearwire (in early January, which was well in-line with its efforts to create a wireless network of its own.

        However, while Dish is in “continued negotiations” to acquire Clearwire, the company filed a letter with the FCC on Tuesday announcing that it decided not to file a petition opposing Softbank’s acquisition of Sprint.

        If Clearwire and its directors accept Dish's proposal, Sprint and Dish will be partners in owning a company. It is difficult to see if this partnership will endure. Also, a deal between Dish and Clearwire will not have a negative effect on Softbank/Sprint deal. It appears that from operational and financial standpoints marrying Dish and Clearwire while keeping Sprint on the side makes sense.

        From being a company shareholders were abandoning, Clearwire is suddenly wanted by two major companies. It makes sense for Clearwire's board to accept the higher offer, which will also allow Clearwire to keep Sprint as a customer and receive much needed financing from Dish.

        Sentiment: Hold