Here are some things going on this morning in your world of tech:
Shares of wireless broadband provider Clearwire (CLWR) are up 35 cents, or almost 13%, at $3.10, after Sprint-Nextel (S) this morning said in a filing with the Securities & Exchange Commission that its board of directors approved pursuing merger talks with Clearwire to obtain the roughly 48% of the company that Sprint does not already own for $2.90 a share. But there is a strong sense that the non-controlling shareholders of Clearwire will hold out for a better deal.
As BTIG Research's Walter Piecyk put it in a note late yesterday afternoon, those non-Sprint holders represent 365 million shares and “we think there are at least that many shareholders that will want much more than $3 per share to approve Sprint�s purchase of Clearwire.” Based on prior wireless spectrum purchases, Sprint should pay at least 26 cents per megahertz of spectrum per “POP,” shorthand for wireless subscribers. That would come out to $5 a share, writes Piecyk. Likewise, Jennifer Fritzsche of Wells Fargo, who has an Outperform rating, writes that “we find it very unlikely that the remaining CLWR shareholder will accept such a price” given that the offer itself suggests it's very hard for Sprint to move forward without Clearwire.
Shares of Best Buy (BBY) are up $2.17, or almost 18%, at $14.35, after Thomas Lee of Minneapolis's Star Tribune reported this Minnesota company may get a buyout offer from its founder, Richard Schulze, by Friday, valuing the company at perhaps $5 billion to $6 billion, citing multiple unnamed sources. That is above Best Buy's current $4.85 billion market cap.
Shares of fiber optic networking equipment vendor Ciena (CIEN) are up 60 cents, or 4%, at $16.18, despite the company this morning reporting fiscal Q4 revenue and profit below analysts' expectations, at $466 million and a net loss of 7 cents a share, excluding some costs, versus Street consensus of $468 million and a 6-cent expected loss. The company forecast Q1 revenue in a range of $435 million to $460 million, again below the $458 million consensus.
Gross margin was actually better than expected, at roughly 42%, although operating expenses surged much higher than expected, leaving many puzzled. However, Jess Lubert of Wells Fargo, who rates the stock Outperform, writes today that 2013 could bring better times, give rising interest, as he sees it, among carriers for Ciena's optical gear.
In case you missed it, Reuters's Leila Abboud and Alistair Barr late yesterday reported on their visits to Apple (AAPL) retail locations around the world, where they “canvassed” more than 70 shoppers and store employees, finding that despite the decline in Apple stock over the last two months, “consumers share little of that negativity.”
The article cites lots of giant ad campaigns by Samsung Electronics (005930KS) and Microsoft (MSFT) and other competitors, but argues they are having little effect in turning the tide.
“Samsung appeared to be marketing aggressively, blanketing stores across major cities with signs for its Galaxy products and other devices, and large displays in many stores. Customers noticed, but only in Singapore and Bangalore did most of those spoken to by Reuters see it as a top choice. Nokia, meanwhile, seems to have all but vanished from the front lines of the retail wars. Amazon's Kindle devices were also little in evidence, though that likely reflects its greater online sales focus.”
Apple shares this morning are down $3.01, or half a percent, at $535.91.
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