Shareholder worries about Sprint Nextel’s growing involvement with Clearwire Corporation (CLWR)

A shareholder in Clearwire Corporation(NASDAQ:CLWR), Mount Kellett Capital Management LP, warned the board members of the company about the growing powers of Sprint Nextel Corporation(NYSE:S) upon the company, in terms of shares. The New York based investment agency is shareholder in Clearwire, with 7.3 percent of the stocks, and Sprint Nextel has recently acquired more stocks of Washington Company, to stand with 50.8 percent of all the shares. Mount Kellett wrote a letter to Clearwire on Thursday, in which it asked the board members of the company to be wary of the growing control of the shares by Sprint Nextel. The company warned Clearwire of how it could negatively affect the value of the company.

The CFO of Mount Kellett, Jonathan Fiorello, write in the letter, demanding more clarity from Sprint Nextel, about its intentions, with regard to the future of Clearwire. The private investment firm demanded a clear answer from the company. It suggested that the company should either formally agree to not buy up more stocks or take up the seats of the board, or the company should produce a tender offer, which would allow the other shareholders to realize the stakes with respect to Clearwire. The letter which was sent to Clearwire, was filed, on the very same day, by the company, with the Securities and Exchange Commission, or the SEC.

This growing insecurity displayed by Mount Kellett, comes after Sprint Nextel acquired more stocks in October. This happened just after SoftBank Corp., the Japan-based wireless carrier has announced its decision to get 70 percent of the shares of Sprint Nextel. This has been causing Mount Kellett a lot of worry, which is why the firm is demanding clarification regarding Sprint Nextel’s role in Clearwire.

Clearwire, however, has stated that despite the growing stakes in the company, Sprint Nextel has no intentions of controlling the company in any way, and the number of board members representing the company shall remain the same, which is, seven of the thirteen board seats for the directors will be given to Sprint Nextel. However, it looks like Mount Kellett is not satisfied with the answer, and they are demanding clarity for all the lesser shareholders. 

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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.

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Tech Movers: Clearwire Corporation (NASDAQ:CLWR), Nokia Corporation (NYSE:NOK)

Nokia Corporation (ADR)(NYSE:NOK)’s third quarter results on Thursday are likely to report a drastic drop in sales and more erosion in market share. Next week, Microsoft will launch its Windows Phone 8 software which Nokia has termed important for its smartphones.

The once number one phone maker has lost both in the top end and bottom end of the market, the former to Apple and Samsung and the latter to several Asian companies. Nokia which was the undisputed leader in the cell phone market for 14 years, had to give up its position in the first quarter, when Samsung sold 86 million units compared to Nokia’s 83 million.

How Should Investors Trade NOK Now? Find Out Here

Although Nokia has replaced the Symbian software in its phones with Windows Phone, the transition period is expected to be difficult for the Finland based company.

An analyst in London expects Nokia to sell only 8 million smartphones against iPhone’s 27 million and Samsung’s 55 million.

On Tuesday, Nokia’s shares rose 9% in the past two trading sessions and now trading higher by a penny.

Sprint not planning to buy Clearwire

Sprint Nextel Corporation(NYSE:S) is not planning to completely take over Clearwire 

Corporation(NASDAQ:CLWR), according to sources with knowledge of the matter. This report led to Sprint’s shares tanking 17 percent after having gained 100 percent in the past three days on speculation of a takeover. However, shares of CLWR are up 5% this morning.

Sprint Nextel had earlier entered into a deal with Softbank Corp. to buy 70 percent stake for $20.1 billion.

Both Softbank and Sprint can’t enter into further deals.  While Softbank cannot do so because of bank stipulations, Sprint’s merger contract prevents it from signing new agreements.

According to Robert Chapman, founder of hedge fund Chapman Capital LLC , “Sprint doesn’t need to own Clearwire now, as they already paid $900 million to lease the spectrum they need for 2012 and 2013.” He went on to say that “Sprint may be better off buying 700 megahertz spectrum.” 

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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.

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Clearwire Corporation (NASDAQ:CLWR) To Gap Down On Latest Unfavorable Report

Shares of Clearwire Corporation(NASDAQ:CLWR) are hammering down sharply in the pre-market session in Tuesday on a report from Bloomberg that Sprint Nextel Corporation(NYSE:S) currently not planning to make a bid for CLWR.

Shares of CLWR were moving higher since past week and as of yesterday rose about 100% on expectation that the recent deal between Sofbank and Sprint Nextel will trigger the acquisition of Clearwire.

The reason seems to be quite logical as Sprint has already paid $900 million to get lease Clearwire from Clearwire for 2012 and 2013. So considering that, it may not make any sense to buy Clearwire at the current price, which is believed to be overvalued by an analyst.

“I don’t talk about any specific detail of our strategy. I never do that in advance,” Softbank President Masayoshi Son said in a conference call, answering an analyst’s question about a potential deal with Clearwire. Sprint holds 48 percent of Bellevue, Washington-based Clearwire and has an equal percentage of voting power, Clearwire said Oct. 11.

Shares of CLWR have slumped 26% to $2.01 in the pre-open session.

On Monday, Ranked 3^rd in the cellphone industry in the US, Sprint is selling a controlling stake to Softbank in Japan in lieu of $20.1 billion.

The deal was announced on Monday in Tokyo. It puts Sprint Nextel as a tough competitor in the US market leaders like AT&T and Verizon Wireless. However, it does not solve the underlying problems that the company is facing.

Spring is based in Overland Park, Kan. It has been limping along since the year 2005, when it had purchased Nextel. The union turned sour very quickly and burdened Sprint with the cost of running two unsuited networks while customers fled.

Softbank is a holding company that invests in internet and telecom businesses. It has made its own move into the wireless world in the year 2005 when it had acquired Vodafone Japan. It had turned the business around, giving President Masayoshi Son the boost that he can make Sprint a lucrative company again after running in losses for five long years. 

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Clearwire Corporation (NASDAQ:CLWR) Set To Open Sharply Lower On New Report

Shares of Clearwire Corporation(NASDAQ:CLWR) are hammering down sharply in the pre-market session in Tuesday on a report from Bloomberg that Sprint Nextel Corporation(NYSE:S) currently not planning to make a bid for CLWR.

Shares of CLWR were moving higher since past week and as of yesterday rose about 100% on expectation that the recent deal between Sofbank and Sprint Nextel will trigger the acquisition of Clearwire.

The reason seems to be quite logical as Sprint has already paid $900 million to get lease Clearwire from Clearwire for 2012 and 2013. So considering that, it may not make any sense to buy Clearwire at the current price, which is believed to be overvalued by an analyst.

“I don’t talk about any specific detail of our strategy. I never do that in advance,” Softbank President Masayoshi Son said in a conference call, answering an analyst’s question about a potential deal with Clearwire. Sprint holds 48 percent of Bellevue, Washington-based Clearwire and has an equal percentage of voting power, Clearwire said Oct. 11.

Shares of CLWR have slumped 26% to $2.01 in the pre-open session.

On Monday, Ranked 3^rd in the cellphone industry in the US, Sprint is selling a controlling stake to Softbank in Japan in lieu of $20.1 billion.

The deal was announced on Monday in Tokyo. It puts Sprint Nextel as a tough competitor in the US market leaders like AT&T and Verizon Wireless. However, it does not solve the underlying problems that the company is facing.

Spring is based in Overland Park, Kan. It has been limping along since the year 2005, when it had purchased Nextel. The union turned sour very quickly and burdened Sprint with the cost of running two unsuited networks while customers fled.

Softbank is a holding company that invests in internet and telecom businesses. It has made its own move into the wireless world in the year 2005 when it had acquired Vodafone Japan. It had turned the business around, giving President Masayoshi Son the boost that he can make Sprint a lucrative company again after running in losses for five long years. 

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Early Hour Movers: Clearwire Corporation (NASDAQ:CLWR) & Texas Instruments (NASDAQ:TXN)

TI mobile chip business acquisition, Amazon in talks: Reports

A Israeli financial newspaper has reported that Amazon.com, Inc.(NASDAQ:AMZN) is in talks with the company which supplies chips for its Kindle tablet and that the discussions have reached an advanced stage. The possible deal with the smartphone chip-making arm of Texas Instruments.

Incorporated(NASDAQ:TXN) could be worth billions of dollars and would place Amazon in direct competition with smartphone makers, California based Apple and South Korea based Samsung Electronics, companies that design chips for their own products.

"It would make sense, as the chip is a critical component and Amazon has an existing relationship with TI," said Nick Dillon, an analyst at Ovum. "With the trend towards more vertical integration, led by Apple, speculation that Amazon is interested in TI's chipset arm is unsurprising," said Ben Wood, head of research at CCS Insight.

However, not all analysts are convinced of the wisdom of such a move. Many feel that several independent smartphone chip makers are running heavy losses and Amazon should not be spending billions on acquiring such a business.

Amazon shares were trading higher at $241.90, down 0.14%. Texas Instruments on the other hand, was trading at $28.10, up 3 percent.

Softbank - Sprint deal drive Clearwire shares up

News that Softbank Corp, the Japanese mobile phone company, is going to buy a majority stake in Sprint Nextel Corporation(NYSE:S) sent Clearwire Corporation(NASDAQ:CLWR) shares flying in pre-market trade Monday. Sprint owns about half of Clearwire. Softbank plans to take a 70 percent stake in Sprint for $20.1 billion.

Clearwire runs a wireless broadband network that Sprint sells as Sprint 4G. Clearwire finds it difficult to operate on a standalone basis and needs funds for network upgrades.

However, the deal with Softbank does not require Sprint to take any action pertaining to Clearwire.

Clearwire shares rose 14 percent to $2.65, up 33 cents in the morning session, extending its one week gain to over 115%.

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Clearwire Corporation (NASDAQ:CLWR) Shares Boosted By Sprint Nextel Corporation(NYSE:S)’s Deal

Clearwire Corporation(NASDAQ:CLWR)’s shares are among the big gainers and volume buzzers on Monday as the stock soared 25% to $2.90 on news that Japanese cell phone company Softbank Corp. has finally agreed to buy a majority stake in Sprint Nextel Corporation(NYSE:S).

Shares of CLWR have been popping up since last week when a report revealed that Sprint may be acquired by Softbank. CLWR is half owned by Sprint.

Sprint rely on Clearwire’s LTE technology, which couldn’t be successful unless CLWR found Sprint, which Sprint resells as "Sprint 4G." Clearwire has struggled to become a viable standalone company, and it needs additional funding to upgrade its network.

That said, the Softbank deal does not require Sprint to take any action regarding Clearwire, according to a regulatory filing announcing the transaction on Monday.

Shares of CLWR have soared 122% in the past on week and made a new 52-week high of $2.95 this morning with more than 27 million shares have traded within first 30 minutes of trading. Shares of Sprint also rose 1.50%.

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Clearwire Corporation(NASDAQ:CLWR) CFO cancels appearance at conference - Sprint Nextel Corporation(NYSE:S)

Clearwire Corporation(NASDAQ:CLWR), in which Sprint Nextel Corporation(NYSE:S) holds a 49 percent stake, cancelled an appearance by its finance head at a financial conference, with reports swirling that it expected to play a larger role in a deal involving Softbank and Sprint.

Clearwire shares jumped more than 4 percent on Friday, while Sprint shares were down 0.8 percent. Clearwire's shares have surged more than 70 percent on Thursday on rumours that the Japanese cell phone company's bid to acquire a controlling stake in Sprint centres on Clearwire.

No reason was given for the non-appearance of Hope Cochran at the conference which was organised by Deutsche bank.

Clearwire owns significant quantities of spectrum in the United States and is also planning launch its own next generation network using technology called TDD LTE, a similar network to that on which Softbank is engaged.

Bloomberg had earlier reported that Softbank would take up around 75 percent stake in the U.S. carrier while the Nikkei newspaper had said that the deal was valued at $19 billion.

The Wall Street Journal said that the Japanese company would multi-billion dollars into the company and end up roughly 70 percent stake.

Sprint will not only get enough money to fund its expansion but will also help it to reduce its huge debt burden, a legacy of its acquisition of Nextel, which was a failure.

However the negotiations with Softbank are still on and the deal has not yet reached conclusion.

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Top News: Clearwire Corporation (NASDAQ:CLWR) & JPMorgan Chase & Co. (NYSE:JPM)

Clearwire Corporation(NASDAQ:CLWR) canceled the appearance of Chief Financial Officer Hope Cochran who was to be present at the Deutsche Bank conference on Thursday. This gives credence to reports that the company is playing a significant role in the deal involving Softbank and Sprint Nextel, its major stakeholder as well as network partner. However, Clearwire gave no reason for the cancellation. The company controls huge chunks of spectrum in the U.S.

Clearwire shares went into a tizzy, up all of 70 percent on speculation that Softbank is interested in buying part or all of Sprint centers on Clearwire. Sprint has a 49 percent stake in Clearwire. This morning, the stock is volatile and was recent down 1.40%, off session high of $2.52.

Clearwire plans to launch a next generation network called TDD LTE. Japan based Softbank, the third largest wireless carrier in that country, is trying to build a similar high speed network.

Softbank is likely to invest billions of dollars in Sprint Nextel which would help the company to reduce debt as well as improve its balance sheet.

JPMorgan Chase & Co.(NYSE:JPM), the largest bank in the U.S. in terms of assets, has posted spectacular profits in the last quarter. On Friday, it said that its earnings for common shareholders were $5.3 billion, up 36 percent from the corresponding quarter last year. These earnings take into account the money to be paid to preferred shareholders. If this expense was excluded, the net income would have been even higher, $5.7 billion to be exact.

Earnings were $1.40 per share, much higher than analysts’ expectations of $1.21. Revenues rose by 6 percent to $25.1 billion against expectations of $24.4 billion.

The JP Morgan stock fell 57 cents and was trading at $41.52 recently.

In June this year, the stock had touched a low of $31 after the company disclosed a trading loss of $6 billion.

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Clearwire Corporation (NASDAQ:CLWR) Up 92%, Sprint Nextel Corporation (NYSE:S) Up 12% On Acquisition Talks

There might soon be news of the biggest Japanese acquisition in the history of America. Apparently, Japanese mobile carrier Softbank is contemplating a purchase of controlling stake worth more than 1 trillion yen ($12.8 billion) in Sprint Nextel Corporation (NYSE:S) in order to secure a position in the wireless market in the US. According to Sprint, the deal has not been finalized, whereas a source states that Softbank is talking to several banks to rake up funds for a bid.

On Thursday, Sprint shares went up 13%, hitting a record high since summer of last year, whereas shares of wireless carrier Clearwire Corporation (NASDAQ:CLWR) shot up 71%. According to Evercore analyst Jonathan Schildkraut, if the deal with Softbank is successful, Sprint’s ongoing cost of capital will be reduced and the company will get a financially stable partner. Even today, CLW’s shares are up 9% to $2.42.

Sprint is currently the 3^rd largest carrier in the US, having a user base of 56 million as of June 2012. The market capitalization of the company at Wednesday's market close came to $15.12 billion. The reason why Sprint is pushing for a lucrative partnership is because it is in the process of an expensive network upgrade.

But Wells Fargo analyst Jennifer Fritzsche said that the would be beneficial for Softbank too as a collaboration with Sprint will more or less guarantee a national presence in the country almost immediately. Softbank will also be able to provide smartphones and mobile devices at a lower rate after the deal goes through.

Reuters had got wind of a deal that Sprint was to supposedly strike with MetroPCS Communications, but it merged with Deutsche Telekom AG's and NTT Docomo. On the other hand, Softbank had declared that it would surpass KDDI's 36 million users by almost 3 million after it acquires mobile service operator eAccess at $1.84 billion. Thomson Reuters statistics reveal that 642 cross-border transactions were made on behalf of Japanlast year, bringing the value of overseas deals up by 81% from 2010, to $69.5 billion.

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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.

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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.

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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. 

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