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DISH Network targets Sprint with competing $25.5B bid to trump SoftBank offer

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by Jeff Causey on
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DISH Network announced today that they have submitted a merger proposal to Sprint with a value of $25.5 billion. The offer consists of $17.3 billion in cash and another $8.2 billion in stock. According to DISH Network’s news release, the cash portion of the deal represents an 18% premium over the offer currently on the table from SoftBank. DISH Network also points out that the ownership proposal for stockholders is a better deal as Sprint stockholders will end up with a 32% in the entire merged company whereas SoftBank is only offering a 30% stake in the Sprint portion of the company if they buy it up. According to DISH Network, the merger with Sprint will create a unique company that can offer customers video, broadband, and voice services both in-home and out-of-home.

Keep in mind Sprint is also in the process of acquiring full ownership of Clearwire, but that deal is contingent on the closing of the SoftBank deal. With a competing offer now on the table, it is not clear how that might impact the acquisition of Clearwire. Sprint has not yet issued a response to this latest offer. Hit the break for the full press release issued by DISH Network. » Read the rest

Deutsche Telekom Approves Better Deal For MetroPCS Merger

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by Mike Stenger on
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Deutsche Telekom has been working to merge its U.S. carrier, T-Mobile, with MetroPCS, and last month received complete regulatory approval. The German company thought the original deal was good, but MetroPCS shareholders disagreed. In an effort to save the merger and finalize it, they approved a better deal today. This new deal will lower the amount of debt transferred to the new company and lower the interest rate on that debt. Lowering the amount of debt transferred means a more valuable equity stake. MetroPCS shareholders are currently being offered about $4 per share in cash and a 26% stake in the combined company. Votes are already being held in advance of a scheduled shareholder meeting Friday and according to an insider, it’s not looking like the deal will go through in its current form.

Source: The Wall Street Journal

T-Mobile/MetroPCS FCC approval may be near as vote date approaches for MetroPCS

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by Jeff Causey on
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With MetroPCS scheduled to vote on a merger with T-Mobile only a couple weeks away, the deal appears to have moved closer to obtaining FCC approval. An attorney for the Communication Workers of America Union claims the deal will be approved “at the bureau level instead of the commission level.” The union is watching the proceedings closely as they have concerns about the merger and this apparent move by the FCC to usher approval on through does not sit well with the union. Debbie Goldman, a director with the CWA refers to the possible FCC decision as “outrageous” and “unprecedented.” Despite the CWA’s concerns, others see this latest development as positive news. David Kuat, an analyst with Stifel Nicolaus & Co., believes the lack of commission level action reveals the deal to be “basically non-controversial” and that “no one thinks this is going to be blocked.”

source: TmoNews

Department of Justice (DOJ) Sanctions T-Mobile/Metro PCS Merger

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by Jason Bracey on
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Okay, so maybe they don’t openly sanction the merger, but it sure appears that way when you analyze it. The DOJ has let an important antitrust law waiting period expire, which opens the floor back up to the merger. The waiting period, which was required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, was enacted to control monopolies across various industries.

Of course, this is not the only Antitrust law in place to control monopolies, so the two powerhouses will still have a few hurdles to overcome before they can make the merger final. The next hurdle will be getting the Federal Communications Commission (FCC) to approve the transfer of spectrum licenses. » Read the rest

MetroPCS sets March 28 as date to vote on T-Mobile merger

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by Nathan Alvarez on
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Save the date folks. Wireless carrier MetroPCS has set March 28th as the date to vote on its merger with T-Mobile. The two phone carriers have been in talks to merge that was reported as early as October 2012. According to reports, this merger will be classified as a “reverse merger” meaning that T-Mobile will merge into MetroPCS’ structure rather than the opposite. Deutsche Telekom will benefit from this merger by getting 74% of the company’s shares. The remaining 26% will go to MetroPCS shareholders which equals a total amount of $1.5 billion.

While the date has been set, there looks to be some potential roadblocks in the form of some opposition to the merger. Among the different opponents out there is P. Schoenfeld, a firm who holds a total of 8.3 million shares, or about 2.3% of shares in MetroPCS. The firm has expressed the intention to vote against the merger using its shares. Along with them is another firm expressing opposition to the merger, Paulson & Co. Paulson & Co. has a total of 8.7% of shares in MetroPCS and may join in the efforts to oppose the merger of the two wireless carriers.

It will be interesting to see how this developing T-Mobile/MetroPCS saga will play out.

Source: MarketWatch

Was actual price Google paid for Motorola less than $2 billion?

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by Jeff Causey on
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A few days ago Google announced that it was selling the set-top box division of Motorola to ARRIS for a combined stock and cash price of $2.35 billion. This event has triggered a look back at the original purchase of Motorola by Google for a publicized price of $12.5 billion by the folks over at Forbes. According to their analysts, two items of value can be backed out of the original purchase price. » Read the rest

Sprint to acquire full ownership of Clearwire, offers $2.97 per share

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by Jeff Causey on
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Confirming news reported last week, Sprint and Clearwire made it official today that Sprint will acquire full ownership of Clearwire. Sprint announced they will pay $2.97 per share, or about $2.2 billion, to shareholders who own the almost 50% stake not currently owned by Sprint. The share price represents a 128 percent premium compared to Clearwire’s closing share price on October 11th, the day before discussions between Sprint and SoftBank were confirmed.

According to the press release issued today, Clearwire’s board of directors unanimously approved the definitive agreement. In addition, commitments were received from Comcast Corp., Intel Corp and Bright House Networks LLC to vote their shares, equal to a 13 percent stake, in favor of the agreement. The transaction is subject to the usual closing conditions, including regulatory approval. The deal is contingent on Sprint and SoftBank closing on their previously announced deal. Both agreements are anticipated to close sometime in mid-2013.

source: Sprint

Sprint, Clearwire moving closer to deal according to CNBC

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by Jeff Causey on
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Reporting on CNBC’s Squawk on the Street, show host David Farber indicated negotiations between Sprint and Clearwire have been heating up in the last few days. Sprint, which already owns a majority interest in Clearwire, has been rumored to be working on a deal to buy out the remaining shareholders. Discussions with some of the other major parties, like Bright House, Intel, and Comcast, have been held in an effort to work through some of the complexities of a potential buyout. According to Farber’s sources, Sprint is trying to gain complete control over Clearwire in order to have access to Clearwire’s spectrum.

Sprint is poised to become a subsidiary of Softbank, probably in March or April 2013. Individuals familiar with the negotiations think the closing of the Softbank deal and the Sprint/Clearwire deal should occur at the same time. In order to provide appropriate notice, Sprint will likely need to issue a statement before the end of the year. Clearwire’s debt holders noted the company did not call First Lien Notes yesterday, adding to the speculation that Clearwire does not anticipate being an independent company for much longer.

source: CNBC

Unapproving shareholders look to block MetroPCS and T-Mobile merger

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by William Metzger on
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T-Mobile’s parent company, Deutsche Telekom, was poised to merge with MetroPCS for a purchase price of $1.5 billion, until the shareholders stepped in. MetroPCS, who has been successful with their low-cost LTE service, is currently sitting at around $11.33 per share. Deutsch Telekom’s original offer of $1.5 billion would hand over 74% of the stock, which works out to around $12.48 per share, as well as include a 1-for-2 reverse stock split. The remaining 26% would stay in the shareholders hands.

The current shareholders are feeling a bit undervalued, which you can’t completely blame them since the company was once valued at $10 billion. They feel that the small asking price is a far cry from the $39 billion AT&T dropped for T-mobile itself, and T-Mo doesn’t even offer LTE service. This barricade by stockholders could potentially affect not only the mobile service business, but also increase the value of the MetroPCS stock on the New York Stock Exchange.

Source: Phandroid

MetroPCS issues a statement confirming current talks of a T-Mobile USA merger

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by Macky Evangelista on
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This was definitely news that I was surprised waking up to. It appears that T-Mobile USA and MetroPCS are in heavy talks in a merger where T-Mobile will absorb MetroPCS in hopes to compete against Sprint’s #3 spot among US providers. What’s even more surprising is that both T-Mobile and MetroPCS are confirming such talks! MetroPCS has released an official statement regarding the merger:

MetroPCS today confirmed that it is in discussions with Deutsche Telekom regarding an agreement to combine T-Mobile USA and MetroPCS.  There can be no assurances that any transaction will result from these discussions, and the Company does not intend to comment further unless and until an agreement is reached.

It seems that talks are indeed going on, but no deal has yet been finalized. Sometimes it’s great when companies are straight forward right? Once this deal comes into fruition, we’ll be sure to let you all know!

source: MetroPCS

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