Someone bought Sprint..

[draggar]

*note* Please do not go political about this, I'm just asking people's thoughts about how this might happen.

With the news of Sotbank buying / investing in Sprint I've been thinking.

The investment is about $20B for a 70% stake in Sprint - Softbank would have a large majority and complete control over the company.

That's not my question.

40% of their investment will go directly into the company (bought from company owned stocks) while 60% will be bought in the open market.

That's 28% of the company's total stock being sold directly from the company and 42% being bought from investors. That's a huge chunk of change.

I know that there will be some sellers to cash in but I wonder, that would be no where near the 42% needed so I have to wonder, have some big time shareholders agreed to sell out their stocks (or at least some of it?), are individual shareholders going to be forced to sell, or are there that many unsold shares on the market?

 

[Shane]

You're assuming Sotbank didn't already have a stake in Sprint.

 

[draggar]

It looks like a full purchase of 70% of the company. I've tried to make sense of a lot of it but boy is it complicated.

This isn't a bad writeup:

​http://kiddynamitesworld.com/sprint-turning-japanese-or-why-sprint-isnt-trading-higher-this-morning/

 

[Gerry]

Saw that news this morning.

First, as in most cases, the shareholders will have to approve the sale.

Most of all, because it is a telco, there will need to be approval from the FCA and other regulators.

Perhaps a very attractive sale with the dollar down and Japanese Yen still okay.

The other 30% outstanding...private investors? Fund managers?

If the board/shareholders agree to sell then that is that...typically one share equals one proxy vote.

Not sure your math is entirely correct but also very curious to note that Sprint stock is at $5.67 a moment ago.



Now, if you are looking at making a couple of bucks a share at the $7.30 mark, that won't happen. Your shares would not be held on the sold date, therefore you may not be eligible to vote (usually a matter of record of ownership date).

Yeah, it is complicated. You may want to take a look at the stock of other teleco's. Perhaps went up because of new money in the US market.

 

[Johnn]

Now, if you are looking at making a couple of bucks a share at the $7.30 mark, that won't happen. Your shares would not be held on the sold date, therefore you may not be eligible to vote (usually a matter of record of ownership date).

No he is not interested in the stocks - You can assume that he works for Sprint.

 

[Theo]

If it matters, Metro PCS was recently bought by T-Mobile.