Macquarie Believes DISH Could Make Compelling Counterbid For DirecTV
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.
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