Today's market activitiy is tied to the Crest debt financing offer. MHO is that the market is reacting positively to that offering's potential to open up more organizational options for Clearwire than just the ridiculous $2.97 offer from sprint... whether such options come from dish or from somewhere else.
It is interesting, however, that dish is currently borrowing the same amount that it offered for clearwire.
The problem still remains that Sprint has bought and paid for clearwire's executives and board members via a cash-out, stock bonus scheme that they ONLY get if sprint is the successful acquirer. As a result, those Clearwire executives and BOD members have clearly been ignoring their fiduciary responsibility to minority shareholders and impeding the efforts of dish and Crest.
It reeks of corporate malfeasance in the worst way, but DOJ and SEC have yet to intervene.
Regarding your statement: The problem still remains that Sprint has bought and paid for clearwire's executives and board members via a cash-out, stock bonus scheme that they ONLY get if sprint is the successful acquirer.
This is the lions den of high capital, high barrier to entry, licensed operator turf. It is not just about the normal disadvantage investors are at in playing the stock game... the rules of the road are different just as they are for some other industries like the large defense contractors... there is not simple freedom of enterprise at work due to the basic grant of monopoly over spectrum and rights that accrue to doing business. Besides that, dumbing things down to a something as simple as just the stock price is insufficient. The ownership issue will not get decided by the regulators because that is not their primary purpose unless antitrust issues line up in a way it overrides the rights of businesses to operate as they see fit under the laws. Shareholders rights are subordinated depending on what else stands above it including debt and commercial agreements. You may not like that but there is no hiding from it.
In the meantime, recognizing all of that, hells bells, go for it.."Those slimy gutter mucking lizard breath scabs! Hold out shareholders 'cause when you got next to nothign, theere ain't nothin' much to lose!" one might say with only a tint of a smile.
Sprint will raise the offer once all the US Government agencies gives their blessings. Until then, why worry about a shareholder? If the U.S. Gov't doesn't approve first, appeasing CLWR shareholders becomes a moot point.
Absolutely correct. The fact that there are a LOT of hurdles to clear with both softbank's bid for sprint, as well as sprints low-ball offer for clearwire, does make it unlikely that sprint will raise it's ridiculous offering price prior to knowing where it stands.
The fact that dish is in better financial shape than sprint... and not dependent on foreigners to be able to afford clearwire... is one reason why dish can bid higher with greater confidence. Few would suggest that the regulators would stand in the way of a dish buyout of minority shareholders.
I'm not sure that Mr. Son realized that multiple interests would stand up and vie for clearwire's future when he instructed sprint to bid such a ridiculous amount. He probably looked at intel and the cable companies' decisions to go another direction and liquidate shares as a sign that he could grab their assets and dominate wireless in the U.S. without fully realizing that, as my friend Don Hays would say...