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. 

You have read this article Clearwire Corporation (NASDAQ:CLWR) / CLWR / NASDAQ:CLWR / NYSE:S / Sprint Nextel / Sprint Nextel Corporation (NYSE:S) with the title Sprint Nextel Corporation (NYSE:S). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/11/shareholder-worries-about-sprint.html. Thanks!

Votel Mobile’s cheap and affordable schemes introduced under Sprint Nextel Corporation(NYSE:S)’s network

There have been many MVNOs which have been joining under the network by Sprint Nextel Corporation(NYSE:S). The Platinum Mobile Brand, which is operated by Macalester Telecom of America, is also under the Sprint bandwagon. Votel Mobile is the newest MVNO is the block. However, if the users or the prospective users are looking for innovative schemes, then there aren’t any. The company has decided to keep options simple and uncomplicated. Its biggest advantage is the fact that it provides really cheap service. In fact, Votel Mobile provides cheaper service than most other prepaid providers who give out unlimited schemes in tier 1and tier 2.

The company has introduced two very basic plans which are very cheap and affordable. The first one is for $33.33 per month, and is the standard “Unlimited” Plan. The second one is the “Android Smartphone Unlimited Plan” under which, the user will have to pay $43.33. These figures are inclusive of the taxes and the other such charges, and therefore, are not deceptive at all. The Votel Mobile connection can be used by three smartphones currently, which are: LG’s Optimus Elite, Replenish, by Samsung, and Kyocera Milano. Apart from smartphones, the connection can be used with normal phones such as the basic ones from Kyocera, Sanyo, as well as LG.

Jeff Javidzad, who is the CEO of Votel Mobile, stated that the company was built by veterans in the mobile industry, who know what the customers want. Instead of trying to make things complicated, the best strategy, they thought, would be to provide simple, uncomplicated and affordable service to the customers. They have tried to dispel the hang-ups which usually come with cheap services. Opting for one would usually be followed by very poor service and limited hand-set selection. The company tries to keep everything simple by not entangling the customers into contracts, catches and conditions. Votel Mobile was built on the clause that the company would provide good service at cheap rates.

After Sprint launched the offer of any company becoming an MVNO, there have been many brands joining under the Sprint Nextel network. However, this has not lead to particularly good business, or a drastic change in revenue for the network.  

You have read this article NYSE:S / Sprint Nextel Corporation / Sprint Nextel Corporation (NYSE:S) with the title Sprint Nextel Corporation (NYSE:S). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/11/votel-mobiles-cheap-and-affordable.html. Thanks!

Stocks In News: Altria Group Inc. (NYSE:MO), Sprint Nextel Corporation (NYSE:S)

Altria Group, Inc.(NYSE:MO), which makes the well-known and iconic Marlboro brand of cigarettes, reported a 44 percent fall in net income in the third quarter, due to charges for a loss on early retirement of debt.

On the flip side it did sell more cigarettes and at higher prices and also managed to expand its market share.

The group, which owns cigarette maker Philip Morris reported net income of $657 million, or 32 cents per share, for the three-month period ended Sept. 30, down from $1.17 billion or 57 cents a share, a year earlier.

Earnings were impacted by previously announced plan to buy back $2 billion in debt, which resulted in a charge of $874 million in the third quarter. Adjusted earnings were 58 cents per share, matching Wall Street expectations.

The company said revenues, excluding excise taxes, rose about 3 percent to $4.46 billion as higher costs to promote its top-selling Marlboro brand were offset by higher prices and volumes. Analysts expected revenue of $4.36 billion.

Meanwhile network services provider Sprint Nextel Corporation(NYSE:S) on Thursday said that its number of subscribers fell in the third quarter, for the first time in two and a half years, as customers switched to other service providers, fed up with the Nextel network.

Sprint lost an overall 423,000 subscribers in the July to September period, as trends across its product line-up were weak.

Sprint's loss was $767 million, or 26 cents per share, for the July-September quarter, from a loss of $301 million, or 10 cents per share, a year ago.

Revenue rose 5 percent to $8.76 billion.

You have read this article Altria Group Inc. (NYSE:MO) / NYSE:MO / NYSE:S / Sprint Nextel Corporation (NYSE:S) with the title Sprint Nextel Corporation (NYSE:S). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/stocks-in-news-altria-group-inc-nysemo.html. Thanks!

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 Sprint Nextel Corporation (NYSE:S). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/sprint-nextel-corporation-nyses-might.html. Thanks!

Softbank will take over 70% of Stock in Sprint Nextel Corporation(NYSE:S) - Clearwire Corporation (NASDAQ:CLWR)

The news is confirmed – A Japanese telecommunications company has acquired a 70% of a wireless carrier, in what is believed to be the biggest international deal for a Japanese firm, with a whopping $20.1 billion! The two companies mentioned are Softbank and Sprint Nextel Corporation(NYSE:S) respectively and the revamped publicly traded firm will be known as “New Sprint”

Stock of Sprint Nextel ended lower by 0.70% in Monday trading. The stock has shot up ever since the impending acquisition came on the news. The deal is awaiting the approval of Sprint shareholders and involves a 36% premium to the average share price of the company over the last two weeks.

Softbank will be able to take on rivals in the wireless market such as AT&T and Verizon, due to its holdings in Sprint. SoftBank founder and CEO Masayoshi Son is a tad nervous, as was implied in a recent press conference, because the US market poses a great challenge as it is a brand new territory with its own trends and they need to start from scratch.

The combination of the two companies will include a 96 million customer base. Sprint Nextel itself is a merger of two firms back in 2005, which is currently the 3^rd largest wireless carrier in the US. The reason for Softbank’s acquisition of Sprint is because growth opportunities in the domestic wireless market in Japanhave slowed over the years, whereas the US market shows promise.

There are some investors who are not too sure about Softbank taking over 70% of Sprint as the telecommunications firm is supposedly $15 billion down in debt and has incurred losses in the last 19 quarters. In fact, Softbank shares have plummeted more than 20% in Tokyo trading when the two companies started negotiations.

Regulators and Congress has given a clean chit to the deal though. The House intelligence committee dispatched a report to US companies, forbidding them to indulge in deals with Chinese telecommunications firms like Huawei and ZTE. Apparently, the telecomm giants have links with the Chinese government and might use their technology to gain information about US consumers, businesses and the government.

On the other hand, shares of Clearwire Corporation(NASDAQ:CLWR) rose 16% to $2.65, well off new highs of $2.95. The stock is down 16% in the pre-market session.

You have read this article Clearwire Corporation (NASDAQ:CLWR) / CLWR / NYSE:S / Sprint Nextel Corporation / Sprint Nextel Corporation (NYSE:S) with the title Sprint Nextel Corporation (NYSE:S). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/softbank-will-take-over-70-of-stock-in.html. Thanks!

Sprint Nextel Corporation (NYSE:S) May Get a $7.30/share From Softbank

U.S. network carrier Sprint Nextel Corporation(NYSE:S) Japanese cellphone company Softbank have reached an agreement under which Softbank will buy a 70 percent stake in Sprint for $20 billion, according to a report on Sunday citing sources.

The deal is expected to be announced on Monday morning.

CNBC said that while the details of the deal are still being worked out "Softbank will buy $8 billion worth of shares directly from Sprint and tender for another $12 billion worth of the shares from existing holders."

The offer price for Sprint's shares are at $7.30 a share, a substantial premium to its current price of about $5.70 each.

The deal has been structured in such a way so that it would not require any voting from shareholders.

"The equity being purchased directly by Softbank includes a $3 billion convertible bond purchase that is exercisable at $5.25 and will be sold well before the deal closes, in order to provide funds for Sprint as it moves towards purchasing the roughly 52 percent of Clearwire Corporation(NASDAQ:CLWR) it does not already own," the report said.

Shares of Sprint have been rising recently and observes and analyst have been watching out for the company to make some acquisitions.

The Softbank deal has come as some surprise to the market, as they feel that any move by Sprint now to acquire any other network carrier would be subject to Softbank's approval, which now has a controlling stake in it.

However Sprint is expected to make an announcement to acquire more stake in Clearwire Corp to gain management control of the company.

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

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.

You have read this article Clearwire Corporation (NASDAQ:CLWR) / NASDAQ:CLWR / NYSE:S / Sprint Nextel Corporation (NYSE:S) with the title Sprint Nextel Corporation (NYSE:S). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/clearwire-corporation-nasdaqclwr-up-92.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 Sprint Nextel Corporation (NYSE:S). You can bookmark this page URL https://calliecountrychatter.blogspot.com/2012/10/softbank-sprint-nextel-corporation.html. Thanks!