Northern, WI 02/04/2013 (usmarketbuzz) – In a candid declaration, Clearwire Corp. (NASDAQ:CLWR) said it has held takeover talks with as many as eight firms in recent times. Two notable carriers Sprint Nextel Corp. (NYSE:S) and Dish Network Corp. (NASDAQ:DISH) have already extended offers to takeover this wireless carrier.
Though Clearwire Corp. (NASDAQ:CLWR) refused to identify the concerned parties in a proxy filing submitted yesterday, analysts with reputed research firms, identified Deutsche Telecom AG’s T-Mobile USA, AT&T Inc. (NYSE:T), MetroPCS Communications Inc. (NYSE:PCS) and China Mobile Ltd. among the companies.
However, Clearwire Corp. (NASDAQ:CLWR) says that it is determined to keep the same terms of its deal with Sprint Nextel Corp. (NYSE:S). The latter already owns 50% of Clearwire, has given an offer of $2.97 per share. Dish has bid $3.30 per share. When contacted, the spokespersons of the concerned carriers declined to comment.
An Internet services company is said to have shown interest in the purchase of Clearwire’s airwaves during the summer of 2011. However, the discussions failed. Speculations are rife that the Internet services company may be Google Inc.(NASDAQ:GOOG) or Amazon.com Inc. (NASDAQ:AMZN).
Though Sprint Nextel Corp. (NYSE:S) claims that its bid for Clearwire Corp. (NASDAQ:CLWR)’s spectrum is simpler without many clauses, a few of the latter’s shareholders are lobbying for a better deal. He company recorded a 0.3% growth to reach $3.19. Sprint Nextel Corp. (NYSE:S) recorded a 1.1 per cent growth to close at $5.69.
Second only to DirecTV (NASDAQ:DTV) in the rapidly growing satellite TV market, Dish Network Corp. (NASDAQ:DISH) is making this bid in an attempt to make a foray into mobile phone service. This proposal is independent of Sprint Nextel Corp. (NYSE:S)’s participation and would require selling of 25% of the stock.
Backed by a cash inflow that was provided by Tokyo-based Softbank Corp., Sprint Nextel Corp. (NYSE:S) inked a deal to acquire 100% of Clearwire Corp. (NASDAQ:CLWR) in the year end. Prior to it, the two companies had decided on a joint venture for a wireless network that would span the entire nation. However, that plan could not work out.
Taking over of Clearwire Corp. (NASDAQ:CLWR)’s spectrum by Sprint is critical for its own network.
The shares of Clearwire Corp. (NASDAQ:CLWR) were down by 0.31% and currently trading at $3.18.
The shares of Sprint Nextel Corp. (NYSE:S) were down by 0.53%and currently trading at $5.66.
The shares of Dish Network Corp. (NASDAQ:DISH) were down by 2.97% and currently trading at $36.56.
The shares of AT&T Inc. (NYSE:T) were down by 1.18% and currently trading at $35.09.
The shares of MetroPCS Communications Inc. (NYSE:PCS) were up by 0.20% and currently trading at $9.91.
The shares of DirecTV (NASDAQ:DTV) were down by 1.23% and currently trading at $51.10.
The shares of Google Inc. (NASDAQ:GOOG) were down by 1.63% and currently trading at $762.97.
Top 3 Gainers: Zynga (NASDAQ:ZNGA), Eros International (NYSE:EROS), Borqs Technologies’ (BRQS)
Zynga (NASDAQ:ZNGA) is up 2.5% after Benchmark reiterated its Buy rating in a look-ahead at Q2 earnings. The firm’s expecting a beat and solid guidance for Q3, and it’s raising its guidance for the fiscal year.
Tailwinds from the pandemic won’t dissipate easily, Benchmark suggests, and the videogame maker’s acquisition of Peak (and with it new “forever franchises” in Toon Blast and Toy Blast) will drive audience, bookings, margins and free cash flow, it says. The firm has an $11 price target, now implying 14% upside.
Eros International (NYSE:EROS) is up 5.8% today, making up the last week’s lost ground, after news that its streaming service Eros Now is partnering with Sony India (SNE +2.3%).
That will mean Eros Now’s app is pre-installed on selected Sony smart televisions in India, along with availability on a large base of existing models (Bravia E series and newer).
The country over the past year has seen a 25% growth in demand for smart TVs, fueled by overall industry growth of 15%, to a record 15M units/year.
Borqs Technologies’ (BRQS) personal safety tracker sees strong market with increased orders from the electronics retail chain in the US.
The boost in product demand comes ahead coronavirus pandemic that provides company to expect delivery of 250K units this year. It reflects over 3x the volume delivered in 2019, the year of its launch.
Borqs’ mobile personal safety devices designed particularly for senior citizens come with panic button, location tracking, and fall detection.
Biotech movers: Pfizer Inc. (PFE), Celgene Corporation (CELG)
Pfizer Inc. (PFE) said on Thursday it received a request for documents as part of a U.S. investigation related to quality issues involving the manufacture of auto-injectors at its Meridian Medical Technologies site.
Pfizer, in a regulatory filing, said it would be producing records in response to the civil investigative demand from the U.S. Attorney’s office for the Southern District of New York.
Meridian, a unit of Pfizer that manufactures EpiPen injectors used to deliver an emergency allergy antidote, has been hit by a series of manufacturing problems in recent years. Mylan NV, which markets EpiPens, has recalled tens of thousands of the devices after complaints that some had failed to activate.
Bristol-Myers Squibb has been meeting with shareholders in Boston and New York over the last two weeks to try to salvage its $74 billion purchase of cancer drugmaker Celgene Corporation (CELG), the biggest acquisition announced so far this year.
The deal, announced in January, was hard sell to Bristol shareholders from the start. The acquisition adds about $32 billion in fresh debt to Bristol’s balance sheet while assuming $20 billion in Celgene’s debt, the companies said at the time. After factoring in debt, the acquisition was the largest health-care deal on record, according to data compiled by Refinitiv.
Now, hedge funds Wellington Management and Starboard Value say the deal doesn’t sit well with them. Bristol has sent executives to New York to meet with institutional investors several times over the last two weeks and met with investors in Boston on Wednesday and Thursday, according to a person who briefed on the meetings.
Bristol-Myers declined to comment.
Big Losers: Corbus Pharmaceuticals Holdings, Inc. (CRBP), Petróleo Brasileiro S.A. – Petrobras (PBR)
Corbus Pharmaceuticals Holdings, Inc. (CRBP)’s shares slumped as much as 16% to $6.94 on huge volume. The stock has been showing intense sell off suddenly after a bearish article on seekingalph.com by Alpha Exposure.
The article stated that Corbus has ties to investors convicted of or alleged to have committed securities fraud. We believe lenabasum has failed its major trials in SSc and CF. Lenabasum was also denied Breakthrough Therapy Designation in SSc. We believe lenabasum will fail in its pivotal SSc and Phase 2b CF trials. We are short Corbus with a price target of $0.50.
Petróleo Brasileiro S.A. – Petrobras (PBR) is expanding its ambitious divestment program and has “bold” plans for sales, the Brazilian state-run oil company’s chief executive said after the firm posted its first annual profit in five years.
On a conference call with analysts to discuss fourth-quarter results, CEO Roberto Castello Branco said selling non-core assets will be key to deleveraging.
Petrobras, as the company is known, can reduce its ratio of net debt to earnings before interest, taxes, depreciation and amortization, or EBITDA, to 1.5 or even to 1, he added.
The University of Chicago-educated CEO, who took the reins in early January, has long been vocal about the need to slim down the sprawling firm and focus on core activities such as exploration and production. Thursday’s comments were some of his most assertive on the matter.