Sprint Nextel Corporation (NYSE:S) Might Control more than 50% of Clearwire Corporation (NASDAQ:CLWR)

Sprint Nextel Corporation(NYSE:S), backed with funds from Japanese cellphone company, Softbank, is negotiating a deal to pay a sum of $100 million to gain majority control over the wireless network operator, Clearwire Corporation(NASDAQ:CLWR). If pioneer Craig McCaw accepts the offer, then Sprint’s voting stake in the company will move to 50.45% from 48.15%. Shares of Sprint went up 5 cents to $5.78 a share.

Although Clearwire controls a big sector of the nation's airwaves, it is lacking in funds required to revamp and expand its reach. Sprint was facing financial constraints as well, till Softbank decided to purchase 70% of Sprint for $20.1 billion. Shares of Clearwire went down 10.20 cents or 10.20% to $2.03 in Thursday trading.

Analyst Christopher King stated that Clearwire shareholders would have been happier if Sprint bought the entire company, but even if Sprint controls a majority, it is certainly brightens up the future of the cash-strapped company. Even if cable companies Comcast and Bright House Networks and chipmaker Intel, which are Clearwire's other major investors, purchase some of McCaw's shares, Sprint will still gain control at 50.02%.

A portion of Sprint’s operations were maneuvered into Clearwire in 2008, which gave the former a stake slightly over 50%, but the former’s financial status forced Sprint to cut down its stake to below 50 %. Sprint is also a wholesale purchaser of Clearwire’s wireless network, which they resell as Sprint 4G. However, Sprint is developing its own 4G network so that future of Clearwire’s network is uncertain.

Apparently, Softbank owns a 4G network back in Japan, with technologies and frequencies similar to what Clearwire’s planned new network uses, which is a subtle indication that the technology will be jointly harnessed.

You have read this article Clearwire Corporation(NASDAQ:CLWR) / CLWR / NASDAQ:CLWR / NYSE:S / Sprint Nextel Corporation / Sprint Nextel Corporation (NYSE:S) with the title Clearwire Corporation(NASDAQ:CLWR). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/sprint-nextel-corporation-nyses-might.html. Thanks!

Clearwire Corporation (NASDAQ:CLWR) Shares Lost Momentum As Takeover Expectations Vanished

Shares of Clearwire Corporation(NASDAQ:CLWR) fell as much as 17.10 percent on Tuesday trades on speculation that Sprint Nextel Corporation(NYSE:S) would not be bidding to raise its stake in the company any time soon. Before today, shares of CLWR had gained 100% in the past one week.

On Monday, Japan's No. 3 network carrier made a deal with Sprint to buy a 70 percent controlling stake in the U.S. carrier for $20.1 billion.

Bloomberg said that the deal between Softbank and Sprint would take about six to eight weeks to close and during that time both companies are restricted from engaging in any activity involving mergers and acquisitions.

Clearwire's shares had risen as much as 16 percent on Monday, when the deal was announced on hopes that the Softbank would help in Sprint taking a controlling stake in it.

However under the terms of the deal it looks like this will not be happening, at least not within this year.

“Sprint doesn’t need to own Clearwire now, as they already paid $900 million to lease the spectrum they need for 2012 and 2013,” Robert Chapman, founder of hedge fund Chapman Capital LLC told Bloomberg.

“Sprint may be better off buying 700 megahertz spectrum.”

Softbank chief Masayoshi Son had declined to answer a question about Clearwire when queried by an analyst. "“I don’t talk about any specific detail of our strategy. I never do that in advance,” he said.

You have read this article Clearwire Corporation / Clearwire Corporation(NASDAQ:CLWR) / NASDAQ:CLWR / NYSE:S / Sprint Nextel Corporation(NYSE:S) with the title Clearwire Corporation(NASDAQ:CLWR). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/clearwire-corporation-nasdaqclwr-shares.html. Thanks!

Softbank - Sprint Nextel Corporation (NYSE:S) deal could change U.S. wireless landscape - Clearwire Corporation (CLWR)

The talks between Japan’s Softbank and Sprint Nextel Corporation(NYSE:S), for the former to pick up a controlling stake in the U.S. carrier has the potential to change the landscape of the telecoms market, a Bloomberg analysis said on Friday.

Not only will it park off a new round of consolidation in a segment that has been seeing a lot of unsteadiness of late, but the merger will create a viable entity that can take on the might of Verizon Wireless and AT&T.

The dominance of the wireless services market by the two large entities has been worrying regulators who fear a duopoly situation developing. The two companies, between them, control about three-fourths of the mobile phone market with contract customers.

Bloomberg said that Japan's third largest wireless carrier could take a 75 percent stake in Sprint, quoting people familiar with the matter.

The Nikkei newspaper had also pegged the size of the deal at $19 billion.

At a more micro level, for Sprint the deal means much-needed infusion of funds, which it can use for its ambitious and costly restructuring exercise.

It can also make a bid for Clearwire Corporation(NASDAQ:CLWR) that will give it more capacity for data transmissions, the Bloomberg analysis said.

Sprint has about 15 percent market share in wireless services and is the third largest network operator in the U.S.

Consolidation of the telecom sector has already commenced with Deutsche taking a controlling stake in T-Mobile USA.

Sprint is in needs of funds to expand its network and reach the kind of scale that both Verizon and AT&T enjoy.

You have read this article Clearwire Corporation(NASDAQ:CLWR) / CLWR / NASDAQ:CLWR / NYSE:S / Sprint Nextel Corporation / Sprint Nextel Corporation (NYSE:S) with the title Clearwire Corporation(NASDAQ:CLWR). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/softbank-sprint-nextel-corporation.html. Thanks!

Trader’s Fav Stocks: Sprint Nextel Corporation(NYSE:S), Oshkosh Corporation(NYSE:OSK), Clearwire Corporation(NASDAQ:CLWR)

Sprint in talks with Softbank

Sprint Nextel Corporation(NYSE:S) has made a statement confirming reports that it is indeed in talks with the Japan based company Softbank about the latter taking a significant stake in the company.

“Although there can be no assurances that these discussions will result in any transaction or on what terms any transaction may occur, such a transaction could involve a change of control of Sprint,” read the statement. “Sprint does not intend to comment further unless and until an agreement is reached.”

There is also speculation that Sprint will buy shares of Clearwire as part of the deal, although Sprint’s statement made no mention of this. Clearwire’s shares reacted wildly to the news.

Sprint was trading at $5.76, up 72 cents or 13 percent. Clearwire was up a whopping 71 percent, up 92 cents, at $2.22.

Metro which had fallen on the assumption that Sprint would no longer bid for it, recovered from the lows of the day and was just 3 cents down at $12.01.

Icahn’s Oshkosh bid too low: Merrill

Truck maker Oshkosh Corporation(NYSE:OSK)’s biggest shareholder, Carl Icahn, has offered to buy the company’s remaining shares at 21 percent higher than Wednesday’s close. But BofA Merrill’s analysts are not happy with the price and want Oshkosh to continue to ‘block and tackle’ the activist investor.

Analysts Andrew Obin, Anna Kaminskaya, and Akshay Bhatia find the offer too low. Last month, the analysts had priced the stock between $35 and $38. It is trading at $29.86, 11 percent higher after Icahn’s bid. A premium of 20 to 30 percent would mean a price of $42 to $49. Icahn is offering only $32.50.

The investor had once planned to merge the company with Navistar International, but analysts are against the idea. They feel that such a step would not have created long-term value to the shareholders of Oshkosh.

You have read this article Clearwire Corporation(NASDAQ:CLWR) / NASDAQ:CLWR / NYSE:S / Oshkosh Corporation(NYSE:OSK) / Sprint Nextel Corporation(NYSE:S) with the title Clearwire Corporation(NASDAQ:CLWR). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/traders-fav-stocks-sprint-nextel.html. Thanks!

Sprint Nextel Corporation (NYSE:S) In Talks To Be Acquired By Softbank - Clearwire Corporation(NASDAQ:CLWR), PCS

Japan's Softbank Corp said on Thursday it was in talks to acquire an ownership stake in U.S. carrier Sprint Nextel Corporation(NYSE:S).

Shares in Sprint rose 14.3 percent to close at $5.76 on Thursday, off the day's high of $6.04 each, the highest level in four years.

Sprint said that the stake being acquired by Softbank would be large enough to entail a change in ownership, though it did not provide any other details.

The Wall Street Journal had earlier reported that the deal would help the Japanese company expand outside its country and had pegged the value of the deal at more than $12.8 billion.

Sprint is a far third behind its larger rivals Verizon Wireless and AT&T, to whom it often loses its high-paying subscribers.

With 56 million subscribers, the company is also saddled with long term debt of $21 million most of its incurred over its acquisition of Nextel that turned out to be a failure.

The company has recently embarked on an expensive restructuring exercise while it has signed a contract worth $15.5 billion with Apple to buy iPhones from the company over four years.

Earlier this year Sprint Chief Executive had said that the telecom industry was set to go through a period of consolidation and Sprint hopes to be part of that consolidation.

The deal with Softbank is expected to be a short in the arm for the company, easing its financial difficulties and probably also paving the way for an acquisition that could significantly increase its size.

Analysts however said that a foreign company acquiring a stake in Sprit might well put a spoke in its acquisition plans.

Clearwire Corporation(NASDAQ:CLWR), which is 49% owned by 49%, also saw a heavy  buying and rose 70.77% to $2.22 on hefty volume. 

You have read this article Clearwire Corporation(NASDAQ:CLWR) / CLWR / NASDAQ:CLWR / NYSE:S / PCS / Sprint Nextel Corporation / Sprint Nextel Corporation (NYSE:S) with the title Clearwire Corporation(NASDAQ:CLWR). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/sprint-nextel-corporation-nyses-in.html. Thanks!