Big funds are rejecting Sprint's bid for Clearwire
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Dish Network's Ergen |
With such a large discrepancy between the the two offers, some investors are deciding to withdraw or hold back their support for Sprint to see if they can get the nation's third largest carrier to raise its bid. Glenview Capital Management, with 28 million Clearview shares, is said to be rejecting Sprint's current offer says a source with knowledge of how the firm is thinking. Chris Gleason, a principal at Taran Asset Management which is another Clearwire holder, is planning to file a complaint with the FCC claiming that Clearwire is worth more than Sprint's bid. Similarly, Crest Financial Ltd. sent a letter to the FCC asking that the agency blocks Sprint's deal because it undervalues Clearwire's spectrum. Sprint is hoping that because the Dish offer is conditional, it won't have to make any changes to its bid.
"Sprint has the ability to get the deal done if they increase their offer. To pretend they don’t have to raise their bid is silly."-Chris Gleason, principal, Taran Asset Management
Speaking of spectrum, Dish wants it to become a mobile carrier. The company already has the blessings of the FCC to use spectrum it owns for satellite transmissions to be the centerpiece of a new mobile carrier as long as Dish follows certain power requirements to prevent interference with its signal. Dish CEO Charles Ergen said he is mulling over whether to go it alone or to add a partner. Meanwhile Sprint wants Clearwire's spectrum to enhance its current service.
While Clearwire's Special Committee has already approved the Sprint offer, the big funds will ultimately have a say in the outcome considering their large holding of stock. Their influence is somewhat limited by Sprint's ownership of a majority of Clearwire's stock. Also involved will be the arbs, who have presumably been buying the shares at current levels, hoping for a higher bid from Sprint. Both the arbs and the funds care about only one thing and that is fetching the highest price possible for their stock. Clearwire closed Thursday at $3.14 a share
source: Bloomberg
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5 Comments
1. papss posted on 18 Jan 2013, 08:58 0 0
Ha I knew this was likely to happen. If sprint doesn't reach for this they will lose this bid.
2. werzzmy40 posted on 18 Jan 2013, 10:39 0 0
Can't wait to see what happens lol it's like a tv series
3. cripton805 posted on 18 Jan 2013, 11:19 1 0
Something is just not right about this whole story about Clearwire. If the investors wanted their stock to go up a lot quicker, it would be a no brainer to merge with Sprint instead of Dish.
The value of Clearwires stock went up $1 when Sprint made that offer and Clear accepted it.
Then out of the shadows when nobody showed interest in the company, Dish is interested. Is Dish part of another company or whos towers are they planning on using owned by who? I think theres more behind the scenes and Dish is being pushed by another entity.
4. wgaurav posted on 18 Jan 2013, 13:08 2 0
Sprint owns 50% of CLWR, and for any bid to be successful in this case needs 75% backing of shareholders howz DISH gonna pull that, Looks like DISH just wants to spoil the party for Sprint, 'Ergen' Style...
5. Twisted247 posted on 19 Jan 2013, 13:59 0 0
these assholes better not be holding off the LTE deployment here in the NW for Sprint. It was supposed to happen at the start of last month... and everyother one on the list for 2nd list went on schedule.. even 3/4 of the 3rd list rollout is already started but the NW is at a standstill and Clearwire is based up here. I believe they provide the Wimax for Sprint in our areas. And Clearwire said they were going to upgrade their Wimax towers to LTE... SO WTF stop holding off
