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Macquarie Believes DISH Could Make Compelling Counterbid For DirecTV

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Macquarie believes Dish Network (NASDAQ: DISH) could make a counteroffer that can offset the regulatory risk of a DIRECTV (NASDAQ: 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 three percent 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. Yong also believes that 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 and T-Mobile US.

Dish shares were trading down 1.42 from Friday's close of 59.95 at 58.53 in Monday morning's session.

Posted-In: counteroffer Softbank T-MobileAnalyst Color News Rumors Offerings M&A

 

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