People walk past a Sprint store in New York December 17, 2012.

NEW YORK | Fri Jan 18, 2013 4:17pm EST

NEW YORK (Reuters) - Investors holding 29 percent of the outstanding minority shares of Clearwire Corp (CLWR.O) are unhappy with Sprint's $2.2 billion bid for the wireless service provider and are pushing for a higher offer.

Sprint, the No. 3 U.S. mobile service provider, announced on December 17 an agreement to acquire the outstanding shares of Clearwire it doesn't already own for $2.97 per share. While Sprint holds a more than 50 percent stake in Clearwire, the deal requires approval from holders of just over 50 percent of Clearwire's minority shares.

Securing that approval is looking increasingly tenuous, however.

Investors collectively owning almost 211 million shares of Clearwire - roughly 29 percent of its minority shares - told Reuters they do not think Sprint's bid is high enough and that they would not be happy casting their votes for the deal.

Crest Financial, which owns about 8 percent of Clearwire's minority shares, immediately sued to block the deal, for example. Crest's argument, echoed by other investors, is that Clearwire is worth a lot more than $2.97 per share as it has valuable wireless spectrum that would be crucial for Sprint.

While the 29 percent alone would not be enough to vote down the deal, its underscores the growing disenchantment Clearwire's minority shareholders have with Sprint's offer. Reuters was not able to reach all Clearwire shareholders.

For the deal to go through, Sprint needs approval from investors holding more than 362 million shares out of the roughly 725.89 million total minority shares outstanding. Share figures are based on the latest publicly available information.

Sprint said in December that it had support from three strategic investors - Comcast Corp (CMCSA.O), Intel Corp (INTC.O), and Bright House Networks LLC - who collectively own about 125.4 million Clearwire shares.

Excluding the almost 211 million votes from the investors Reuters spoke to and the 125.4 million shares supporting the deal, investors with about 389.8 million outstanding Clearwire shares have not disclosed if they will approve the deal or force Sprint to revise its offer.

HIGHER DISH OFFER

Dish Network (DISH.O), controlled by mercurial billionaire Charlie Ergen, made a $3.30 per share counter-offer for Clearwire on January 8, putting further pressure on Sprint to raise its bid. Clearwire's board is reviewing the Dish bid but said that the proposed deal may not be permitted because of Clearwire's existing legal obligations to Sprint.

However, the Dish bid has convinced many of Clearwire's minority shareholders that enough discontent exists to potentially block Sprint's bid.

"Sprint can't get 50 percent of those shares. They've no way to get them," said Chris Gleason, a managing partner at Taran Asset Management, which owns about 3 million Clearwire shares.

Mount Kellett, an investment firm with about 7.3 percent of Clearwire's minority shares, said Dish's offer is proof Sprint's bid is "grossly inadequate." Mount Kellett also said it is likely to be voted down and accused Clearwire's board of breaching its fiduciary duties for accepting the bid.

Another investment manager whose firm's holdings include Clearwire shares said the Dish offer was a turning point.

"If somebody was on the fence about saying no to Sprint, they're not on the fence any more," said the investment manager who asked not to be named due to their firm's policy on media comments.

"Anybody who thinks $2.97 is a full and fair value has already exited," said the person, referring to the fact that Clearwire shares have traded well above Sprint's offer price since Dish announced its bid. Clearwire shares were up 6 percent above Sprint's offer price at $3.16 on Friday.

This person described the $2.97 offer as "dead on arrival."

Sprint, which has agreed to sell a 70 percent of its own shares to Japan's Softbank Corp (9984.T), has said that it believes its Clearwire bid is superior to Dish's offer.

Sprint argues that the Dish deal is not viable because it comes with conditions Clearwire could not accept.

While Sprint said in December that it had commitments from Intel, Comcast, and Bright House, it is worth noting that those companies have not updated their position since the Dish offer and declined to comment for this story.

(Reporting By Sinead Carew; Editing by Peter Lauria, Bernard Orr)

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LONDON | Thu Jan 31, 2013 4:21am EST

LONDON (Reuters) - Growing palm oil trees to make biofuels could be accelerating the effects of climate change, new research showed on Wednesday, adding further weight to claims the crop is not environmentally sustainable.

In a paper published in the journal Nature, an international team of scientists examined how the deforestation of peat swamps in Malaysia to make way for palm oil trees is releasing carbon which has been locked away for thousands of years.

Microbes then penetrate the carbon and the harmful greenhouse gas carbon dioxide is released, which is thought to be the biggest contributor to global warming.

Unsustainable methods of growing crop-based biofuels have come under fire as environmentalists question the emissions savings they make, the agricultural land they occupy and whether the growth of certain crops contribute to deforestation.

More than 80 percent of palm oil is grown in Indonesia and Malaysia. According to some estimates, an area the size of Greece is cleared every year for palm oil plantations.

As governments and companies look to biofuels to provide a low-carbon alternative to fossil fuels in transport, the industry has expanded rapidly.

Palm oil is especially attractive because it is cheaper than rapeseed oil and soybean oil for biodiesel.

However, leaked European Union data has shown palm oil biodiesel to be more polluting than conventional gasoline when the effects of deforestation and peatlands degradation is taken into account.

In their study, the research team measured water channels in palm oil plantations in the Malaysian peninsular which were originally peatland swamp forest.

They found ancient carbon came from deep in the soil, then broke down and dissolved into nearby streams and rivers as deforestation occurred.

"We have known for some time that in South East Asia oil palm plantations were a major threat to biodiversity (..) and that the drainage could release huge amounts of carbon dioxide during the fires seen there in recent years," said Chris Freeman, one of the authors of the report and an environmental scientist at the University of Bangor in Wales.

"But this discovery of a 'hidden' new source of problems in the waters draining these peatlands is a reminder that these fragile ecosystems really are in need of conservation," he added.

There are approximately 28,000 sq km of industrial plantations in Malaysia, Sumatra and Borneo and there are even more planned, making them a major contributor to peat swamp deforestation in the region, the paper said.

"Our results are yet another reminder that when we disturb intact peat swamps and convert them to industrial biofuel plantations, we risk adding to the very problem that we are trying to solve," said Freeman.

The research team included scientists from the British universities of Leicester and Bangor, the Open University, the Met Office Hadley Centre, the Natural Environment Research Council Radiocarbon Facility in Scotland, the University of Palangka Raya in Indonesia and water research institute Deltares in the Netherlands.

(This story has been refiled to add Open University in last paragraph)

(Editing by James Jukwey)

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The Virgin Galactic SpaceShip2 (VSS Enterprise) glides toward Earth on its first test flight after being released from its WhiteKnight2 (VMS Eve) mothership over Mojave, California October 10, 2010.

CAPE CANAVERAL, Florida | Wed Aug 1, 2012 8:20pm EDT

CAPE CANAVERAL, Florida (Reuters) - Commercial suborbital spaceflights should bring in between $600 million and $1.6 billion in revenue in their first decade of operations, according to a study commissioned by the U.S. and Florida governments and released on Wednesday.

Tourism drives about 80 percent of the demand for suborbital flights, which reach about 63 miles above the planet's surface before plunging back through the atmosphere.

The thrill ride gives fliers a few minutes to float in microgravity and a view of the Earth set against the blackness of space.

Virgin Galactic, an offshoot of Richard Branson's London-based Virgin Group, is one of six firms developing reusable suborbital spaceships, an analysis by The Tauri Group of Alexandria, Virginia, found.

Prices currently range from $200,000 for a ride on Virgin Galactic's SpaceShipTwo, a six-passenger, two-pilot vehicle currently undergoing testing, to $95,000 for a flight on privately held XCOR Aerospace's planned two-seater Lynx vehicle.

Virgin Galactic, which is aiming to begin commercial service around 2014, already has $70 million in deposits from 536 people, Chief Executive George Whitesides said at a related congressional hearing on Wednesday.

The Tauri Group believes there are about another 7,500 wealthy people waiting in the wings.

"?Our analysis indicates that about 8,000 high-net-worth individuals from across the globe are sufficiently interested and have spending patterns likely to result in the purchase of a suborbital flight - one-third from the United States," the report said.

"?We estimate that about 40 percent of the interested, high-net-worth population, or 3,600 individuals, will fly within the 10-year forecast," it added.

The study, which included surveys of 200 people with a net worth of least $5 million, valued the fledgling industry at $600 million in its first decade, based on current market conditions and interest.

The market could be worth nearly three times that if marketing and consumer interest grows in the wake of successful flights, the study said.

"?Further potential could be realized through price reductions and unpredictable achievements such as major research discoveries, the identification of new commercial applications, the emergence of global brand value, and new government (especially military) uses for suborbital reusable vehicles," the study said.

After tourists, the next biggest group of potential users are in the research community. Other potential markets include technology flight demonstrations, media and public relations, education, satellite launching, remote sensing and suborbital travel from one destination to another, a technology that is likely beyond the study's 10-year time frame.

The $277,000 study, titled ?"Suborbital Reusable Vehicles: A Ten-Year Forecast of Market Demand," was paid for by the U.S. Federal Aviation Administration, which oversees commercial spaceflight, and the state of Florida, which is home to NASA's Kennedy Space Center.

(Editing by Jane Sutton and Cynthia Osterman)

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* Tourism is driving demand for suborbital thrill flights

* First commercial suborbital flights could start by 2014

* Advance fares range from $95,000 to $200,000 per seat

By Irene Klotz

CAPE CANAVERAL, Fla., Aug 1 (Reuters) - Commercial suborbital spaceflights should bring in between $600 million and $1.6 billion in revenue in their first decade of operations, according to a study commissioned by the U.S. and Florida governments and released on Wednesday.

Tourism drives about 80 percent of the demand for suborbital flights, which reach about 63 miles (100 km) above the planet's surface before plunging back through the atmosphere.

The thrill ride gives fliers a few minutes to float in microgravity and a view of the Earth set against the blackness of space.

Virgin Galactic, an offshoot of Richard Branson's London-based Virgin Group, is one of six firms developing reusable suborbital spaceships, an analysis by The Tauri Group of Alexandria, Virginia, found.

Prices currently range from $200,000 for a ride on Virgin Galactic's SpaceShipTwo, a six-passenger, two-pilot vehicle currently undergoing testing, to $95,000 for a flight on privately held XCOR Aerospace's planned two-seater Lynx vehicle.

Virgin Galactic, which is aiming to begin commercial service around 2014, already has $70 million in deposits from 536 people, Chief Executive George Whitesides said at a related congressional hearing on Wednesday.

The Tauri Group believes there are about another 7,500 wealthy people waiting in the wings.

"“Our analysis indicates that about 8,000 high-net-worth individuals from across the globe are sufficiently interested and have spending patterns likely to result in the purchase of a suborbital flight - one-third from the United States," the report said.

"“We estimate that about 40 percent of the interested, high-net-worth population, or 3,600 individuals, will fly within the 10-year forecast," it added.

The study, which included surveys of 200 people with a net worth of least $5 million, valued the fledgling industry at $600 million in its first decade, based on current market conditions and interest.

The market could be worth nearly three times that if marketing and consumer interest grows in the wake of successful flights, the study said.

"“Further potential could be realized through price reductions and unpredictable achievements such as major research discoveries, the identification of new commercial applications, the emergence of global brand value, and new government (especially military) uses for suborbital reusable vehicles," the study said.

After tourists, the next biggest group of potential users are in the research community. Other potential markets include technology flight demonstrations, media and public relations, education, satellite launching, remote sensing and suborbital travel from one destination to another, a technology that is likely beyond the study's 10-year time frame.

The $277,000 study, titled “"Suborbital Reusable Vehicles: A Ten-Year Forecast of Market Demand," was paid for by the U.S. Federal Aviation Administration, which oversees commercial spaceflight, and the state of Florida, which is home to NASA's Kennedy Space Center. (Editing by Jane Sutton and Cynthia Osterman)

View the original article here