Dish's offer for Sprint beats SoftBank's
Source: Agencies |
April 16, 2013, Tuesday
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Print Edition
Print Edition
DISH Network is offering to buy Sprint Nextel Corp in a cash-and-stock deal it values at US$25.5 billion, saying its bid is superior to that of Japanese phone company SoftBank.
SoftBank Corp is seeking approval from US authorities for its US$20 billion purchase of a 70 percent stake in Sprint Nextel Corp that would be Japan's biggest foreign acquisition ever. Sprint previously said it expected the deal with SoftBank to close in the summer.
The transaction, which was unveiled in October, was looked at as a way to position Sprint as a stronger competitor against rivals AT&T and Verizon.
Dish, a Colorado-based satellite television company, said yesterday that its proposed deal includes US$17.3 billion in cash and US$8.2 billion in stock.
Sprint stockholders would get US$7 per share, which is a 13-percent premium to its Friday closing price of US$6.22. This includes US$4.76 per share in cash and 0.05953 Dish share per Sprint share.
Dish said that the cash portion of its bid is an 18-percent premium over the US$4.03 per share implied by the SoftBank offer, while the stock portion represents about 32 percent ownership in a combined Dish/Sprint company, as compared with SoftBank's proposal of a 30-percent interest in Sprint alone.
Dish said that its offer is a 13-percent premium to the existing SoftBank offer. The company also said that its proposal would result in estimated cost savings of US$11 billion.
SoftBank Corp is seeking approval from US authorities for its US$20 billion purchase of a 70 percent stake in Sprint Nextel Corp that would be Japan's biggest foreign acquisition ever. Sprint previously said it expected the deal with SoftBank to close in the summer.
The transaction, which was unveiled in October, was looked at as a way to position Sprint as a stronger competitor against rivals AT&T and Verizon.
Dish, a Colorado-based satellite television company, said yesterday that its proposed deal includes US$17.3 billion in cash and US$8.2 billion in stock.
Sprint stockholders would get US$7 per share, which is a 13-percent premium to its Friday closing price of US$6.22. This includes US$4.76 per share in cash and 0.05953 Dish share per Sprint share.
Dish said that the cash portion of its bid is an 18-percent premium over the US$4.03 per share implied by the SoftBank offer, while the stock portion represents about 32 percent ownership in a combined Dish/Sprint company, as compared with SoftBank's proposal of a 30-percent interest in Sprint alone.
Dish said that its offer is a 13-percent premium to the existing SoftBank offer. The company also said that its proposal would result in estimated cost savings of US$11 billion.
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