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Taran Clearwire Dish Press
1. Exclusive: Softbank caps Sprint's Clearwire bid;
investors want more
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By Nadia Damouni and Sinead Carew
NEW YORK | Thu Dec 13, 2012 10:34pm EST
(Reuters) - Sprint Nextel Corp's $2.1 billion offer to buy out Clearwire
Corp appeared to be running into trouble on Thursday, as some
shareholders said they wanted more money while Softbank Corp set
a cap on how much Sprint could pay.
Sprint, which owns 50.45 percent of Clearwire, offered $2.90 per share for the rest of the company
and said it would also provide interim financing of $800 million to the cash-strapped company. Any
deal would need approval by Softbank, which has agreed to buy 70 percent of Sprint for about $20
billion.
Clearwire shareholders, who together hold about 7.6 percent of the company, criticized the Sprint
offer on Thursday, with some saying that the No. 3 U.S. wireless carrier should raise its bid to at
least $5 per share. Holders of at least 24.8 percent of Clearwire's outstanding stock, other than
Sprint, need to approve the deal.
Clearwire, which is reviewing the Sprint offer, saw its shares jump almost 15 percent on Thursday
to $3.16, suggesting investors expected a higher price.
But Softbank has told Sprint that it would not consent to any Clearwire bid higher than $2.97 per share, two sources close
to the matter said. The threshold is the same price that Sprint recently paid to buy a small stake from Clearwire founder
Craig McCaw's Eagle River Holdings LLC.
Sprint, Clearwire and Softbank declined to comment on the details of these discussions.
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AVq1nKcHhttp://www.reuters.com/article/2012/12/14/us-clearwire-sprint-softbank-idUSBRE8BD03920121214recommendAVq1nKcHhttp://www.reuters.com/article/2012/12/14/us-clearwire-sprint-softbank-idUSBRE8BD03920121214recommend
2. For Clearwire, the deal is one of the few options it might have to survive in the long term. The company needs to raise
more financing to upgrade its network and to keep the business afloat. It has said that it has enough money to last it until
the third quarter.
Stabilizing Clearwire is also in Sprint's interest, which not only has a majority ownership of the company. The hurdles Sprint
is running into highlight the complexities it faces in trying to take on its larger rivals, Verizon Wireless and AT&T Inc. A deal
would also bolster Sprint's network and give the carrier full control of Clearwire's substantial spectrum.
The timing of Sprint's current negotiations with Clearwire is being driven by Clearwire's uncertain liquidity position, said the
sources who asked not to be named because the discussions are private.
A third source close to the situation said Clearwire is also in talks about other strategic alternatives besides the Sprint offer.
The person did not give details about what those alternatives were.
INVESTORS GRIPE, SOFTBANK SETS CAP
Several Clearwire shareholders on Thursday said they were dissatisfied with Sprint's offer.
Crest Financial, which owns more than 3 percent, said it "intends to take whatever actions it can" to protect Clearwire
shareholders against "unfair dealing by Sprint and other parties."
Even before the Sprint offer was formally announced, Crest had filed a lawsuit on Tuesday against Clearwire and Sprint to
try to thwart a deal after reports emerged about discussions between the companies.
Another shareholder, who declined to be named, told Reuters in an interview that an offer in the $5 per share to $8 per
share range would be more acceptable to investors.
"This deal should happen. It's good for Clearwire. It's good for Sprint. $2.90 is not the right price," said the person who
asked not to be named due to a lack of authorization to talk in public about investments.
Chris Gleason, a managing partner of Taran Asset Management, said "$5 to $7 is a fair range."
"You're at $5.30 before you start being real," said Taran, who owns about 3 million Clearwire shares.
But Softbank, which holds the key to the deal, is not willing to go that high, according to the sources.
Softbank founder Masayoshi Son's $2.97 per share threshold for the bid comes as Clearwire's shares have risen over the
past couple of months on investor expectation of the deal.
The Eagle River purchase represented roughly a 130 percent premium to where Clearwire's stock had been trading before
news of Softbank's deal with Sprint.
Moreover, if Sprint were to pay any other shareholder a higher price than the Eagle River deal, it would have to increase its
payments to Eagle River to match the higher price.
The final outcome of the deal, however, remains unclear.
Clearwire's other minority shareholders include Intel Corp and Comcast Corp, which own about 12.4 percent between
them.
Sprint has been in discussions with those companies about purchasing their shares, sources have said previously.
Intel said on Thursday that it was evaluating Sprint's offer, while Comcast declined to comment.
3. Related Quotes and News
COMPANY PRICE RELATED NEWS
Softbank Corp
9984.T
¥4,715
-50.00 -1.05%
Clearwire Corp
CLWR.O
$3.27
+0.02 +0.62%
Comcast Corp
CMCSA.O
$41.81
+0.19 +0.47%
U.S. to review equipment purchases to approve
Sprint deal - WSJ
Japan's Nikkei slips on Cyprus bailout worries
More 9984.T News »
Crest files proxy statement to oppose Sprint-
Clearwire deal
UPDATE 2-Hedge fund Aurelius offers Clearwire
$80 mln financing
More CLWR.O News »
Supreme Court sends back lawsuit on washing
machines
UPDATE 1-U.S. top court sends back lawsuit on
washing machines
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Analysts said Clearwire could also afford to hold out for a higher price.
"With a year of liquidity on the books and the alternative of raising additional equity or refinancing debt at this level,
Clearwire is hardly without options, and we don't see why the company would necessarily jump at the $2.90 bid,"
JPMorgan analyst Philip Cusick said in a research note.
Pacific Crest analyst Michael Bowen said he believes that Sprint "should not pay more than $3" per share for Clearwire,
but he added that the company may be pressured into eventually increasing its offer to $3.50 per share.
(Reporting by Nadia Damouni and Sinead Carew; Editing by Ken Wills and Paritosh Bansal)
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4. Clearwire Investors Join Push for Higher
Bid
By Scott Moritz & Alex Sherman - Jan 18, 2013 3:25 PM CT
More Clearwire Corp. (CLWR) shareholders have joined the chorus of investors
asking Sprint Nextel Corp. (S) to raise its bid for the wireless-network operator after a
counteroffer from Dish Network Corp. (DISH)
Glenview Capital Management, which owns about 28 million Class A shares, plans to reject
Sprint’s current offer, according to a person with direct knowledge of the situation. Taran
Asset Management, another Clearwire investor, will file a complaint with the Federal
Communications Commission, arguing that Clearwire is worth more than Sprint’s bid, said
Chris Gleason, a principal at the New York-based firm.
“Sprint has the ability to get the deal done if they increase their offer,” Gleason, whose firm
owns 3 million shares of Clearwire, said in an interview. “To pretend they don’t have to raise
their bid is silly.”
Sprint, which already owns just over 50 percent of Bellevue, Washington-based Clearwire,
is attempting to buy the rest of the shares for $2.97 apiece. After Clearwire’s board agreed
to the terms last month, Dish moved in with a $3.30-a- share offer. Sprint has argued that its
bid is superior because it’s simpler and carries fewer conditions.
Even so, Sprint will need to increase the bid to persuade Clearwire investors to walk away
from Dish’s offer, said the person familiar with Glenview’s thinking, who asked not to be
named because the firm’s decision isn’t public.
Spectrum Value
The shareholders are the latest investors to join the rallying cry for a higher bid. Crest
Financial Ltd., a Houston- based firm, asked the FCC to block the deal because it
undervalues Clearwire’s spectrum -- the airwaves that let mobile devices connect to
wireless networks. New York-based Mount Kellett Capital Management LP, meanwhile,
sent a letter this week to Clearwire’s board asking them to consider Dish’s offer.
Mount Kellett has said it holds 53.2 million shares, or about 3.6 percent of the outstanding
stock. Crest Financial owns 45.8 million shares, according to a Nov. 6 letter. There are 691
million Class A shares outstanding.
5. Clearwire rose 1 percent to $3.17 at the close in New York. The current price signals that
investors expect a bid to go higher than Sprint’s $2.97 offer. Sprint rose 0.4 percent to
$5.65.
“Sprint controls the show, and they could eliminate Dish’s involvement if they picked off
some investors,” said Walt Piecyk, an analyst at BTIG LLC in New York. “But that would
involve increasing their bid.”
Dish’s Strategy
Dish, the second-largest U.S. satellite-television provider, is making the bid as part of an
expansion into mobile- phone service. Its proposal would require Clearwire shareholders to
sell at least 25 percent of the stock and wouldn’t be dependent on Sprint’s participation,
though it’s subject to conditions that may require Sprint’s approval.
Sprint, the third-largest U.S. wireless carrier, has said the matter is in the hands of the
Clearwire special committee, which has accepted Sprint’s offer.
“We believe our offer is superior to Dish’s,” said Bill White, a spokesman for Overland
Park, Kansas-based Sprint. “Dish has made a highly conditional proposal, so it’s not even
possible to make a counteroffer to that.”
Dish, founded by billionaire Charlie Ergen, asked regulators yesterday to pause their
review of a separate transaction -- Softbank Corp. (9984)’s $20 billion investment in Sprint.
Wait and See?
Sprint’s acquisition strategy depends on the cash infusion, and the Clearwire takeover is
conditional on the deal with Tokyo-based Softbank going through. Dish, based in
Englewood,Colorado, said the FCC should wait until the Clearwire situation evolves before
acting.
Clearwire has made no decision on reconsidering Sprint’s offer, according to a statement
last week. Clearwire said it plans to talk to Dish and will keep its options open by not
drawing on financing offered by Sprint.
Sprint agreed to acquire 100 percent of its network partner Clearwire in December, two
months after its deal with Softbank. The joint venture had struggled to build a nationwide
wireless network over the past four years, leading to billions in losses for Clearwire.
Sprint plans to take over Clearwire’s spectrum and use it to enhance its own network. Sprint
Chief Executive Officer Dan Hesse said last month that the deal was “critical” to turnaround
efforts at the carrier.
6. Clearwire’s airwaves would be a prized possession for Sprint and Softbank, especially since
it matches the spectrum Softbank already owns in Japan, Piecyk said. If Sprint does
nothing, the company’s Clearwire takeover may not win a shareholder vote, he said.
“If Sprint loses, they hurt their chances to buy Clearwire, and it opens up the door for Ergen
to grab a big chunk of spectrum,” he said.
To contact the reporters on this story: Scott Moritz in New York
at smoritz6@bloomberg.net; Alex Sherman in New York at asherman6@bloomberg.net
To contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.net
7. Subscribe Log InEUROPEEDITION Thursday, January 24, 2013As of 4:06PMrd
Comments (6) DEAL JOURNAL HOME PAGE »
Associated Press
ByDavid Benoit
One Clearwire shareholder wants Sprint to eat its own words.
Sprint’s offer to acquire the half of
Clearwire it doesn’t already own hasn’t
exactly excited the rest of Clearwire’s
shareholders, and now one is turning to
the FCC to block the deal.
Taran Asset Management filed a petitions
withe FCC asking the regulator to deny
the deal under the auspices that Sprint’s
acquisition “is not in the public interest.”
In making its argument, Taran uses
language Sprint may find familiar: It quotes Sprint’s filings with the FCC to block
AT&T’s deal to buy T-Mobile.
“The proposed transaction would turn back the clock on competition and innovation
and bring this era of unprecedented wireless expansion and technological innovation
to an abrupt, but avoidable, halt.”
Taran notes in its filing that the language was “dramatic for effect” but it “adequately
describes the threat this transaction poses to the high-speed wireless broadband
future of the United States.”
The firm says the FCC should “at a minimum” wait for the bidding process and
shareholder vote to conclude before even launching a review.
Aspokesman for Sprint wasn’t immediately available for comment. Clearwire declined
to comment Tuesday.
Last week Dish Network, which has lobbed a competing offer for Clearwire, asked the
FCC to allow more time for a review of Sprint’s sale to Softbank.
Taran is only the latest Clearwire shareholder to voice an objection to the deal, which
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requires approval from half of the non-Sprint holders.
Reuters this weekend reported that up to 29% of minority shares expect to vote
against the deal. That would not be enough to reject the deal, but would be a
considerable amount of no votes.
Clearwire, DishNetwork, Softbank-Sprint, sprint
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CLEAR POST
10:15pmJanuary 22, 2013
JS wrote :
Thanksfor totally avoiding my question.
5:24pmJanuary 22, 2013
Telecomguy wrote :
In the analyst meeting where Hesse did his best to destroy the Clearwire share price by
suggesting Sprint would set at any liquidation/BK table for Clearwire assets, he also insured the
Clearwire minority shareholders (which he must now have for a deal), would never sell for a loss
to him, they would rather see the assets be valued in the BK, which he so much wanted to bring
about at that time. Hesse may be good at improving Sprint customer relations, however he is a
fool when it comes to creating value for his shareholders, as Sprints share price has also taken
a beating, even if it has recovered since that same analyst meeting.
Simply put, the DISH offer is better in the short term for Clearwire shareholders regardless of the
work required by the BoD to make it happen. The DISH offer should move forward unless a
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10. Clearwire Investors Use Dish to Demand
Sprint Raise Offer
By Tara Lachapelle & Lindsey Rupp - Jan 28, 2013 4:38 PM ET .
.
Charlie Ergen is becoming the financial savior that Clearwire Corp. (CLWR) shareholders
never expected. And he doesn’t even have to open his wallet.
Ergen, the chairman of Dish Network Corp., made a surprise counteroffer of $3.30 a share
for Clearwire, topping a $2.97 bid from Sprint Nextel Corp., which already owns more than
50 percent of the wireless-network operator. Clearwire closed as high as $3.30 last week,
reaching the level of Dish’s proposal for the first time since it was disclosed Jan. 8.
Enlarge image
Charlie Ergen, the chairman of Dish Network Corp., made a surprise counteroffer of $3.30 a share for Clearwire, topping a $2.97 bid from
Sprint Nextel Corp., which already owns more than 50 percent of the wireless-network operator. Photographer: Andrew Harrer/Bloomberg
5:48
Jan. 8 (Bloomberg) -- Joseph Clayton, chief executive officer of Dish Network Corp., talks about his company's bid for Clearwire Corp., the
wireless-network operator that agreed to be bought out by Sprint Nextel Corp. last month for $2.97 a share. Dish bid $3.30 a share for
outstanding stock in the company, which is majority-owned by Sprint, Clearwire said today in a statement. Clayton speaks with Jon
Erlichman on Bloomberg Television's "Bloomberg West" from the Consumer Electronics Show in Las Vegas. (Source: Bloomberg)
.
While a Dish deal is a long shot because it’s subject to conditions that may require Sprint’s
approval, it’s enough to embolden Clearwire’s minority investors to push Sprint to at least
match the bid. With the stock already at that level, traders are betting Sprint will increase its
bid by 11 percent, more than any other similar-sized deal pending in North America,
according to data compiled by Bloomberg. Sprint, which needs backing from more than half
of Clearwire’s minority shareholders to succeed, is already facing opposition from owners
including Taran Asset Management and Crest Financial Ltd.
11. “Sprint continuing to stand by this $2.97 bid is not going to work,” Keith Moore, an event-
driven strategist at MKM Partners LLC in Stamford, Connecticut, said in a telephone
interview. “The Dish bid is illusionary. But Sprint still has the problem of having to get
enough shareholders to support them.”
Softbank Approval
Sprint said in a Dec. 13 regulatory filing that it proposed paying $2.90 a share to acquire
Clearwire. Four days later, it agreed to a bid of $2.97 a share -- or about $2.2 billion.
Overland Park, Kansas-based Sprint, the third-largest U.S. mobile-phone carrier, is getting
an infusion of cash from Japan’s Softbank Corp. (9984), which is buying 70 percent of
Sprint for about $20 billion. At the time, Softbank wouldn’t agree to a Clearwire bid above
$2.97, people familiar with the negotiations said then.
Before Dish’s rival bid was disclosed, Clearwire had been trading at a discount to the Sprint
deal, a sign that investors weren’t expecting higher offers. Analysts weren’t either.
“It’s Sprint or nobody,” Christopher King, a Baltimore- based analyst at Stifel Financial
Corp., said last month before Dish stepped in.
Since Dish made its surprise offer, Clearwire’s stock traded between the two bids, until it
closed at $3.30 on Jan. 24. At that level, traders are betting Sprint will increase its offer to
match Dish’s, according to Alfredo Scialabba, a New York-based special situations analyst
at GFI Group Inc. (GFIG)
Today, Clearwire shares rose 2.8 percent to $3.36, the highest closing price since Dec. 14.
Spectrum Value
While the four-year joint venture between Sprint and Clearwire struggled to build a
competitive nationwide wireless network, Clearwire still owns valuable spectrum -- the
airwaves that are used to transmit voice and data for mobile devices.
For Sprint, full control of Clearwire’s spectrum, which blankets the entire country, would help
the carrier shore up its wireless network at a time when smartphones and tablets are fueling
a surge in data traffic.
While Clearwire’s board has already approved the transaction, the majority of the
stockholders that aren’t affiliated with Sprint or Softbank must also sign off.
“What could happen is that Clearwire’s shareholders decide to, and are able to, vote down
the Sprint transaction,” Scialabba said in a phone interview. “The likelihood of Dish (DISH)
winning this battle is minimal, but as long as the value emerges and people understand and
clarify what’s really inside Clearwire, this could embolden all the shareholders. That could
force the hand of Sprint.”
12. Shareholder Dissent
Some shareholder dissent has already surfaced. Glenview Capital Management plans to
reject Sprint’s current offer, a person with knowledge of the situation said earlier this month,
while Taran Asset Management said it will file a complaint with the Federal Communications
Commission, arguing that Clearwire is worth more than $2.97 a share. Crest Financial
already asked the FCC to block the transaction.
Mount Kellett Capital Management LP, which owns 7.7 percent of Clearwire’s Class A
shares, the second-biggest minority stake, sent a letter to Clearwire’s board asking them to
consider Dish’s bid.
Sprint has argued that its bid is better because it’s simpler and carries fewer conditions, and
that the matter is in the hands of the Clearwire special committee, which has accepted
Sprint’s offer. Clearwire has said it plans to talk to Dish and will keep its options open by not
drawing on financing offered by Sprint.
‘Highly Conditional’
“Sprint’s agreement to acquire Clearwire is superior to the highly conditional Dish proposal
and offers Clearwire shareholders certain and attractive value,” Scott Sloat, a spokesman
for Sprint, said in an e-mail Jan. 25.
Mike DiGioia, a spokesman for Bellevue, Washington-based Clearwire who works at JLM
Partners Inc., declined to comment. Bob Toevs, a spokesman for Englewood, Colorado-
based Dish, didn’t respond to phone or e-mail messages seeking comment.
Dish offered to buy 24 percent of Clearwire’s spectrum and acquire as much as all of the
company’s stock. A deal is contingent on at least 25 percent of shareholders tendering and
doesn’t need Sprint’s participation, though it’s subject to conditions that may require Sprint’s
approval.
Sprint’s majority stake makes it “virtually impossible” for Dish to buy the entire company,
said Shing Yin, a New York- based analyst for Guggenheim Partners LLC.
Dish, the second-largest U.S. satellite-television provider, is trying to expand into mobile-
phone service and aims to use Clearwire’s airwaves to bolster those ambitions.
Negotiating Tactic
While billionaire Ergen is “always hard to predict,” the takeover bid may be a bargaining
tactic to get a hold of some of Clearwire’s spectrum, instead of the whole company, Yin
said.
13. “He obviously would like to buy it at the most attractive price possible,” Yin said. “Right now,
to negotiate to buy a piece of that spectrum probably involves negotiating with Sprint (S),
so he put that offer out there to bring them to the table.”
Because the Dish proposal is only a preliminary indication of interest with several
conditions, Sprint doesn’t need to respond with a higher bid now, Yin said. Without a
binding offer from Dish, it may be risky to block Sprint, he said.
Even if Sprint does boost its price, the company may not be willing to reach the level of
Dish’s bid, said MKM’s Moore.
Critical Deal
“I anticipate that Sprint will raise its offer,” Moore said. “But will they raise it to match the
$3.30? My guess is they’re going to try not to. I think the stock’s ahead of itself.”
Still, Sprint could offer as much as $3.50 to $3.75 a share to secure the support of minority
stockholders, said Kevin Smithen, a New York-based analyst for Macquarie Group Ltd.
“It’s critical that Sprint gets Clearwire closed as soon as possible,” he said in a phone
interview. “We just don’t think Sprint wants to risk having any uncertainty or any further
delays, either caused by Dish or dissident shareholders.”
To contact the reporters on this story: Tara Lachapelle in New York at
tlachapelle@bloomberg.net; Lindsey Rupp in New York at lrupp2@bloomberg.net
To contact the editor responsible for this story: Sarah Rabil at srabil@bloomberg.net
14. UPDATE 2-SoftBank fight for Sprint seen trumping easy gains
http://www.cnbc.com/id/100647103[7/29/2013 1:21:11 PM]
BUSINESS NEWS
GO GO
WATCH ART CASHIN
Summers' 'candidacy' a
ruse
UPDATE 2-SoftBank fight for Sprint
seen trumping easy gains
Text Size
Published: Tuesday, 16 Apr 2013 | 3:59 PM ET
By: Mari Saito, Tim Kelly and Sinead Carew
TOKYO/NEW YORK, April 16 (Reuters) - Masayoshi Son, billionaire
founder of Japanese mobile carrier SoftBank Corp , is expected to
stay in the battle for U.S. wireless service provider Sprint Nextel
Corp, even though he could profit handsomely by walking away.
While the intentions of Charlie Ergen, the chairman of Dish Network
Corp, should be clear - after a bold $25.5 billion counterbid for Sprint
- not everyone is convinced the deal will go through.
Son, a rare risk taker in Japan's conservative corporate culture, is
likely to put his ambitions to create a global company ahead of quick
financial gains, analysts in Asia said on Tuesday. Sprint would give
SoftBank a U.S. toehold.
But Ergen's dealmaking history and poker-player past, have led
some in the United States to question the intentions of the executive,
who in January countered Sprint's bid for control of another U.S.
wireless service provider, Clearwire Corp with a higher offer. He said
on Monday he would honor Sprint's bid and had not formally
withdrawn his bid.
"(Ergen) plays a multi-hand approach to the world," said Chris
Gleason, a managing partner at Taran Asset Management, which
owns shares in Clearwire and options to buy Dish shares, adding,
"it's not 100 percent clear yet what he wants."
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15. UPDATE 2-SoftBank fight for Sprint seen trumping easy gains
http://www.cnbc.com/id/100647103[7/29/2013 1:21:11 PM]
Gleason, who still holds out hope for a Clearwire deal with Dish, said
Ergen could be making "a play to rattle the Sprint-SoftBank deal."
Macquarie analyst Amy Yong said that while Dish appears to be
serious about its offer for Sprint, his pursuit of the No. 3 U.S. carrier
could help present Ergen with other options if SoftBank ends up
winning the battle.
"It gives him a seat at the table to discuss to discuss his pay-TV
business, his spectrum and financial flexibility with a number of
companies," Yong said of Ergen.
The Dish offer, Yong said, could lead to talks between Dish and
companies ranging from satellite TV rival DirecTV to wireless
providers AT&T Inc and a combined T-Mobile USA and MetroPCS,
which plan to merge with each other.
One communications industry banker said that while Ergen's offer
seems solid, he could change his mind.
"He's always playing options. He changes his mind a lot," said the
banker, who is not involved in the Dish deal, but has worked on past
deals where Ergen was involved, and asked not to be named due to
a lack of authorization to speak to the media.
Another source, this one from the industry who does business with
Sprint questioned if Dish would have the expertise to run a mobile
network.
"Just because they have the money does not mean that they know
how to manage a large carrier, especially when Sprint has a major
network upgrade going on," said the person, who asked not to be
named.
Dish has made no announcement about the management of the new
company, because it is in the early stages of trying to get the deal
together, Dish spokesman Bob Toevs said. But Toevs dismissed any
suggestion Dish's intentions were other than those publicly stated.
"I don't think you could characterize our proposal as anything but
serious given the vision we've outlined and the resources we've
marshalled to make that vision a reality," he said.
The Dish bid follows SoftBank's October proposal to buy 70 percent
of Sprint for $20.1 billion and is roughly a 13 percent premium to the
Softbank bid according to Dish
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16. UPDATE 2-SoftBank fight for Sprint seen trumping easy gains
http://www.cnbc.com/id/100647103[7/29/2013 1:21:11 PM]
Dish outlined plans to combine its TV service with Sprint's wireless
network in an attack on rivals including Verizon Wireless and AT&T.
SoftBank said its proposal would offer Sprint shareholders "superior
short and long term benefits to Dish's highly conditional preliminary
proposal." Sprint said it had no update on the situation on Tuesday.
But even if Dish does not succeed Yong said of Dish's rivals in
telecommunications and pay-TV: "As a defensive move you have to
start talking to Dish."
SoftBank appears to have deeper pockets than Dish, the No. 2 U.S.
satellite TV provider, but if it engages in a bidding war Guggenheim
analyst Shing Yin said it would be hard to estimate "exactly where
Dish's limit is."
Dish could end up accepting a network-sharing deal with Sprint if it
can buy some spectrum from Clearwire in exchange for backing off
from SoftBank's deal, Yin said.
SON WON'T WALK AWAY
SoftBank said it was already in the advanced stages of receiving the
necessary approvals for its Sprint deal, and expected to wrap up the
deal by July 1.
"The issue for Son is that he wants to build a global company, he
promised to do that. This is probably the one shot he has of doing
that, and I don't think he's going to walk away," said Neil Juggins,
Hong Kong-based regional telecoms analyst at JI Asia, an affiliate of
Societe Generale.
A Tokyo-based analyst who declined to be named said: "Son isn't
going to give up that easily. I expect him to come back with a higher
offer," he said.
That should prove straightforward, said a Tokyo-based banking
source: "Son won't be short of money, thanks to all the banks. The
crucial point is not about how much he can afford, it's about how
much return he wants to get."
"If Son did not think of a rival offer like this he was careless, but I
don't think he's careless. He is a thoughtful, careful businessman ...
and all the lender banks are willing to lend to him," the source said.
SoftBank will go ahead with a dual tranche bond issue in dollars and
17. UPDATE 2-SoftBank fight for Sprint seen trumping easy gains
http://www.cnbc.com/id/100647103[7/29/2013 1:21:11 PM]
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euros that is worth $2 billion, a company spokesperson told IFR, a
Thomson Reuters company. That bond issue is to help fund its Sprint
deal.
Even if SoftBank does walk, the Japanese company would stand to
make a roughly $3.5 billion profit.
SoftBank said last year that it had hedged its acquisition with a
forward exchange rate of 82.2 yen to the U.S. dollar, saving some
200 billion yen ($2.04 billion) in the process. The yen has since
weakened 24 percent against the dollar.
SoftBank also stands to make about $1 billion from a $3.1 billion
convertible bond it bought from Sprint last year at $5.25 per share
and can convert to shares if it abandons the deal. Sprint shares rose
1 percent to $7.16 Tuesday after rising more than 13 percent on
Monday to a near 4-1/2-year high.
On top of all that, SoftBank would also be paid a $600 million break-
up fee if Dish captures Sprint.
"Short term, yes, there are benefits that they would gain if they
walked away, but I think SoftBank shareholders would mark them
down quite heavily," said Juggins of JI Asia.
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AT&T Inc Hong Kong DISH Network Corp DIRECTV
T-Mobile US Inc Thomson Reuters Corp
Price Change %Change
9984.T - - -
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18. UPDATE 2-SoftBank fight for Sprint seen trumping easy gains
http://www.cnbc.com/id/100647103[7/29/2013 1:21:11 PM]
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20. Ergen’s big deal: Dish Sprint run really may be about Clearwire - NYPOST.com
http://www.nypost.com/p/news/business/ergen_big_deal_xvdGqBR32Ve4SGngnQtE6I[7/29/2013 1:19:08 PM]
Bloomberg News
It may bemore dream than stream right
now, but it looks like Dish’s Charlie Ergen would like take
his media company in this direction.
Ergen’s big deal: Dish
Sprint run really may be
about Clearwire
By JOSH KOSMAN, CLAIRE ATKINSON and GARETT SLOANE
Last Updated: 8:32 AM, April 17, 2013
Posted: 12:23 AM, April 16, 2013
Charlie Ergen’s $25.5 billion offer to buy Sprint may be about much less than
gaining control of the No. 3 US wireless carrier.
Ergen’s Dish Network yesterday made a nonbinding offer of roughly $7 a share for
Sprint — which is more than twice its size — but its target may actually be the
Sprint-controlled 4G network Clearwire, sources told The Post.
Dish has already bid $3.30 a share for Clearwire, topping Sprint’s $2.97 a share bid
— and yesterday Ergen said he was not abandoning that chase.
“Is Charlie playing a chess game?” one source close to the deal wondered aloud
yesterday. “Is he really making a play for Sprint or trying to freeze them?” he told
The Post.
The billionaire, this month called
by the Hollywood Reporter the
“most hated man in Hollywood,”
may have just put Sprint in quite a
box.
Sprint is trying to buy the 49
percent of Clearwire it does not
own — but, one source noted, it is
increasingly looking like Clearwire
shareholders are going to reject
that deal.
“Clearwire equity holders would
get $8 to $10 a share if the
company was broken up and all
the spectrum sold,” said Chris
Gleason of Taran Asset
Management. The company owns
both Dish and Clearwire equity.
However, Sprint likely cannot raise its offer for Clearwire if it is in takeover talks with
Ergen’s Dish.
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21. Ergen’s big deal: Dish Sprint run really may be about Clearwire - NYPOST.com
http://www.nypost.com/p/news/business/ergen_big_deal_xvdGqBR32Ve4SGngnQtE6I[7/29/2013 1:19:08 PM]
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And Clearwire said Friday in a filing that if the Sprint merger was not completed, it
“may be forced [in June] to explore all available alternatives, including” filing for
bankruptcy.
Dish owns much of Clearwire’s debt and could repossess the business in a
restructuring, sources said.
“What a bind for Sprint,” a source following the situation said. “This sounds like
classic Ergen.”
Dish’s bid for Sprint is contingent on seeing Sprint’s books, so if Sprint recommends
its offer, it wwould be weeks before Ergen would need to make a firm proposal.
So Ergen might be able to find ways to walk away from the Sprint deal after the
Clearwire shareholder vote, sources said.
Sprint’s shares rose 13.5 percent to $7.06 a share, indicating that shareholders
believe Ergen’s offer is genuine — even if some on Wall Street do not.
Clearwire’s shares fell 3.4 percent to $3.15. Dish shares slipped 2.3 percent to
$36.77.
If Ergen’s target is indeed Sprint, it is one of his most audacious moves yet to move
from the sleepy pay-TV sector to the more dynamic wireless.
Getting Sprint and its valuable spectrum would allow Dish to offer video streaming
and high-speed Internet.
Ergen will have to outmaneuver Japanese wireless carrier SoftBank for Sprint.
SoftBank has offered $20 billion for Sprint, and the wireless carrier’s board must
now decide if Dish’s offer — which it claims is 13 percent higher than SoftBank’s —
is worth considering.
SoftBank largely wants to buy Sprint for Clearwire, because by owning Clearwire it
will have the ability to offer global roaming.
SoftBank can respond by raising its offer for Sprint, which sources say it has the
cash to do.
A Dish spokesman declined comment.
jkosman@nypost.com
News Gossip Sports Weird Entertainment
23. Clearwire investors aim to force Sprint to
sweeten bid
By Sinead Carew
NEW YORK | Fri May 17, 2013 7:03am EDT
(Reuters) - Minority shareholders of Clearwire CorpCLWR.O are
expected to vote down a buyout offer from Sprint Nextel Corp (S.N)
next week and force the No.3 U.S. wireless company to cough up
more cash for control of Clearwire's valuable spectrum.
Sprint owns more than 50 percent of Clearwire and has offered to buy the remaining roughly 49
percent at $2.97 per share, or $2.2 billion. For the deal to succeed, it needs approval from more than
half of minority shareholders at a special meeting on May 21.
Investors with roughly 31 percent of the public shares have said either in statements or in interviews
with Reuters that they are unhappy with the offer. They include: Mount Kellett Capital Management
LP, Highside Capital Management, Glenview Capital Management and Chesapeake Partners
Management.
"There's no way it passes unless they bump the price," said Taran Asset Management principal
Chris Gleason, whose firm manages more than 1 million Clearwire shares. He predicted that Sprint's
offer will be voted down and said $5 to $7 per share is a fairer price range.
Clearwire shares closed at $3.23 on Thursday, and have been trading above the Sprint offer price
since early January.
"I'd be surprised if there are a lot of investors that would vote in favor of taking a loss," said a
portfolio manager at a top-20 Clearwire shareholder, who was not authorized to speak to the media.
"It's illogical to assume anybody would vote in favor of the deal with the stock trading where it is,"
said the manager, adding that a $4.50-per-share bid would be "much fairer."
24. Sprint has dismissed criticism that its bid undervalues Clearwire and says the spectrum valuation
compares well to past airwaves sales.
The bid is contingent on Sprint's sale to SoftBank Corp (9984.T), which has a target close date of
July 1, and the Japanese wireless service provider would need to approve any change in terms. The
bid could also be usurped by satellite TV provider Dish Network (DISH.O), which has made a rival
offer for Sprint. Dish Chairman Charlie Ergen has said he would honor Sprint's agreement with
Clearwire.
HOW HIGH IS HIGH?
Clearwire has been losing money and has struggled to win customers, but its shareholders argue
that it deserves a higher price because all the top U.S. network operators are looking for
opportunities to buy more airwaves.
"We think that Sprint could win the vote on the 21st by sweetening its offer to about $4.00," said
Macquarie analyst Kevin Smithen, who estimated that this would cost Sprint another $500 million to
$600 million. Macquarie Group (MQG.AX) is among a group of four banks looking to finance Dish's
bid for Sprint. {ID:nL2N0DW2DH]
But it is not clear that Crest Financial, which holds about 8 percent of Clearwire's public shares,
would even agree to a higher Sprint price. Crest has said that Clearwire would be better off as a
stand-alone company, and is leading a proxy battle against the deal.
Sprint has said full control of Clearwire would help it better compete against larger rivals Verizon
Communications Inc (VZ.N) and AT&T Inc (T.N). It has also said that strategic investors with 26
percent of the public shares have committed to vote for the deal.
If the deal is voted down, one big concern is that Clearwire could end up in bankruptcy. Clearwire
has warned of that risk and said it might default on interest payments due on June 1 if the deal is not
approved and it is unable to draw on more funding from Sprint.
Roe Equity Research analyst Kevin Roe thinks the risks from a negative vote on Tuesday outweigh
the cost of a higher bid to Sprint. For example, Sprint would forego potential savings that it could
gain from combining its network with Clearwire's.
"The alternative is the risk of bankruptcy and not having control over it. Over what, over less than $1
billion?" he said.
If Clearwire's assets were auctioned off in bankruptcy Sprint may also have to compete with deep-
pocketed rival bidders. For example, Verizon has recently offered to buy a portion of Clearwire's
spectrum for $1 billion to $1.5 billion.
Even if Tuesday's vote goes badly, Sprint would still hold roughly 68 percent of Clearwire after a
debt conversion and the agreed sale of Clearwire shares by strategic investors Comcast Corp
(CMCSA.O), Intel Corp (INTC.O) and Bright House Networks. SoftBank has said it would be happy
with this higher stake and saw no need to sweeten the Clearwire bid.
But a large equity stake would not be enough to protect Sprint's interests in the case of a
bankruptcy, where debt holders have more clout than shareholders.
Creditors also include Dish, which is looking to build a wireless service to expand beyond its
maturing TV business. Dish first announced its ambitions to own Clearwire, with a $3.30 per share
counter-offer in January. Dish owns about $950 million of Clearwire's roughly $4.5 billion in long-
term debt.
"I don't think Sprint wants to bring it to the point where they'd have to negotiate with Dish in
bankruptcy," said Nomura analyst Michael McCormack.
26. Analysis: With SoftBank close to getting Sprint, what will happen to Clearwire? - FierceWireless
http://www.fiercewireless.com/story/analysis-softbank-close-getting-sprint-what-will-happen-clearwire/2013-06-20[7/29/2013 1:44:21 PM]
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Now that Dish Network (NASDAQ: DISH) has said it will not make a new offer
for Sprint Nextel (NYSE:S), clearing the way for SoftBank to get control of
Sprint, the most intriguing M&A question is: What will happen to Clearwire
(NASDAQ:CLWR), which Dish and Sprint are both pursuing?
Clearwire's vast trove of 2.5 GHz spectrum has been a key part of Sprint's long-
term strategy for a long time and was also on the mind of SoftBank Masayoshi
Son when he made his bid for Sprint. Dish too wants access to some of
Clearwire's airwaves, possibly to deploy a fixed Internet service that would
provide homes with speeds of up to 50 Mbps. Clearwire's board has endorsed
Dish's $4.40 per share tender offer for at least a 25 percent share in the
company over Sprint's $3.40 per share to take control of the rest of Clearwire it
does not already own.
Industry and financial analysts think that SoftBank and Sprint will either need to
raise their offer for Clearwire or make a deal with Dish Chairman Charlie Ergen.
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"It would be a cultural shock for any company to be partnered with Dish or to
have any operating arrangement with it," Brean Capital analyst Todd Mitchell
told Reuters, noting that Dish has had a history of severing relationships with
partners or ending up with them in court. (Sprint has sued both Dish and
Clearwire to block Dish's bid.)
Taran Asset Management principal Chris Gleason, whose firm holds about 1
million Clearwire shares, said Sprint will need to make a decisive move--and
soon. Clearwire shareholders are set to vote June 24 on Dish's bid, one day
ahead of Sprint's shareholder vote on the SoftBank proposal. "You've got to do
a significantly higher bid or come to a deal with Charlie this week," Gleason
said, referring to Ergen.
Topics: Financial News | Spectrum News | Wireless Carrier News
Analysis: With SoftBank close to getting Sprint,
what will happen to Clearwire?
June 20, 2013 | By Phil Goldstein
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27. Analysis: With SoftBank close to getting Sprint, what will happen to Clearwire? - FierceWireless
http://www.fiercewireless.com/story/analysis-softbank-close-getting-sprint-what-will-happen-clearwire/2013-06-20[7/29/2013 1:44:21 PM]
Sprint and Dish declined to comment, according to Reuters.
BTG analyst Walter Piecyk wrote in a blog post that Sprint "still likely has an
opportunity to negotiate" with Clearwire's minority shareholders to get a deal
done. "The threat of lengthy litigation, whether real or not, could resonate with
some Clearwire holders, but as we have said for the past [six] months, we think
Clearwire holders will want at least $5 to approve a Sprint acquisition," he
wrote.
"If Ergen is able to secure a minority position in Clearwire, it could better
position him to extract spectrum and/or a wholesale deal from Sprint," Piecyk
added. "On one hand, a spectrum sale would help Sprint's pro-forma debt
leverage and establish a broader ecosystem for 2.5/2.6 GHz spectrum. On the
other hand, SoftBank would be helping a future competitor obtain the capacity
to be more competitive if it sold off spectrum. We believe a central element of
[Son's] strategy is the speed and capacity potential of Clearwire's spectrum
position and that he would prefer to own it all."
Guggenheim analyst Shing Yin told Reuters that, if Dish becomes a large
shareholder in Clearwire, Dish could hinder Sprint's planned use Clearwire's
TD-LTE network. "Dish has the potential to disrupt whatever plans SoftBank has
for Sprint and Clearwire," Yin said.
Analysts think some kind of deal between SoftBank and Dish is likely. "After all,
remember that Dish still has a number of options to make SoftBank's life even
more miserable, including mounting a rival bid for the PCS H Block spectrum
which Sprint desperately needs to enhance the capacity of its existing LTE
network," wrote TMF Associates analyst Tim Farrar. "So maybe the question is
now when not if SoftBank will be forced to settle with Dish?"
For more:
- see this Reuters article
- see this BTIG blog post (reg. req.)
- see this TMF Associates blog post
Related Articles:
Dish gives up on Sprint, focuses on acquiring Clearwire
Sprint sues to block Dish's takeover of Clearwire
Previewing its Clearwire plans, Dish tests 50 Mbps fixed LTE service with
nTelos spectrum
Clearwire chooses Dish instead of Sprint
If he can't buy Sprint, what is Ergen's plan B? (And C and D?)
SoftBank increases bid for Sprint to $21.6B to counter Dish
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28. Analysis: With SoftBank close to getting Sprint, what will happen to Clearwire? - FierceWireless
http://www.fiercewireless.com/story/analysis-softbank-close-getting-sprint-what-will-happen-clearwire/2013-06-20[7/29/2013 1:44:21 PM]
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