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Dish Increases Clearwire Bid to $4.40 Per Share

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Hmmmm....

Jarahawk

May 29, 2013, 9:46 PM
A $1 more per share. Is there a legitimate reason to turn it down from Clear's viewpoint?
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T Bone

May 30, 2013, 1:03 AM
As I understand it, Dish doesn't actually have the money on hand, they are going to borrow it....one company in debt buying another in debt does not equal a profitable company....in fact it equals one company with a very large debt that it can't hope to pay off. So after Dish bails our Clearwire....who bails out Dish?
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johnhr2

May 31, 2013, 2:40 PM
First -> Dish bails our Clearwire
Second-> Sprint bails out Dish/Clearwire
Third -> SoftBank bails out Sprint/Clearwire/Dish.

Softbank comes out with an extra company and is now in the Satellite TV business.
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vikes0115

May 30, 2013, 10:48 AM
No, there is no legitimate reason for Clear to turn it down. Its a cash offer, so it doesn't matter to the Clear shareholders or members of the board of directors how Dish gets the money, or what the long-term ramifications are for Dish. They're cashed out. If it were a cash and stock offer that would come into play, but as an all cash offer it just doesn't matter.

Clear's board of directors actually has a fiduciary duty to recommend this bid over Sprint's, as this maximizes value for the shareholders. The shareholders' likewise would be insane to reject a $1 per share higher cash offer to go with Sprint. Sprint really has no choice but to up their offer before the vote or plan to move on without Clearwire.
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rawvega

May 30, 2013, 1:07 PM
Even if the BoD were to prefer the Dish offer, the Clearwire bylaws still prevent a sale without Sprint's approval which they almost certainly wouldn't give. Ergen certainly could attempt to buy up all of the outstanding shares, but he's said that he would only do that if he can buy enough to give him 25% ownership or greater AND be able to appoint three members to the Clearwire BoD. I don't see Sprint agreeing to that either. Ergen is making these bold moves, but Sprint is still in the catbird seat here. While they may be getting blocked from buying the rest of Clearwire for the moment, nothing else can happen without their say-so either.
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brobert11

May 31, 2013, 9:54 AM
and don't forget, while currently Sprint owns 51% they do have agreements to purchase shares regardless of the merger activity from Brighthouse, Comcast and Intel so effectively they own 68% of Clearwire - meaning Ergen's bid to get at least 25% of the company and 3-seats is a lightly disguised bluff to push Sprint/Softbank to strike a deal to use thier spectrum or sell some of Clear's for Dish's wireless play... This does not seem like a winning strategy for Dish...
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T Bone

May 31, 2013, 10:59 AM
For Dish, it is like the Vietcong, they don't have to win, they just have to not lose. The Vietcong lost every single military engagement they had with the US, in fact they lost by a huge margin, but because they weren't completely wiped out, and they still existed after the American withdrawal that means that they won, in a sense.

The same is true here with Dish I think.

In other words, if their bid is rejected, they lose nothing. On the other hand, if their bid is accepted, they win everything. In either case, by making a bid, they at least achieve the goal of screwing over Sprint, whom they apparently see as a rival.

So whether they win or lose the bid, they still achieve something that they can consider victory,.and for their...
(continues)
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Phineas

May 31, 2013, 11:30 AM
In the long run all we are talking about is the 25% that sits out there after Sprint buys the other large players stock. It's a play to impact the Sprint sale to Softbank and that is it. Softbank and Dish both want Clear but owning outright won't come unless you own Sprint. I think the only thing that has changed is that Clear minority shareholders are getting more money every day but the ownership of the company will only matter to who owns Sprint.
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DarkStar

May 31, 2013, 4:28 PM
I'm pretty sure that the bid that Dish is offering is for all of Clear. Not just a portion of it.
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