Macquarie Believes DISH Could Make Compelling Counterbid for DTV

Monday, May 19, 2014, Macquarie wrote in a morning report, they believe Dish Network Corp. DISH could make a counteroffer that can offset the regulatory risk of a DIRECTV DTV and Dish merger. Macquarie analyst Amy Yong writes, "Dish can bid US$120/sh+ or US$30/sh+ cash and offer a financially more attractive deal to shareholders." Yong notes Dish would likely need to pay a 3% break-up fee. Yong notes that Dish Chairman Charlie Ergen may have already found more attractive ways to create value, other than partnering with AT&T, Inc. T. Yong also believes that during the M&A regulatory concessions could work in Dish's favor by securing spectrum at below-market rates, or could become the fourth player in the wireless industry in the event of consolidation, such as a deal betweenSoftBank Corp. SFTBF and T-Mobile US, Inc. TMUS. Dish shares were trading down 1.42 from the previous close of 59.95 at 58.53 at 10:54AM EDT.