SoftBank ups Sprint offer by USD 1.5 bln

News Wireless United States 11 JUN 2013
SoftBank ups Sprint offer by USD 1.5 bln

Japanese communications provider SoftBank has agreed to raise its offer for US operator Sprint Nextel. In an attempt to fend off a rival offer from Dish Network, Softbank has increased its offer by USD 1.5 billion to USD 21.6 billion, which is still lower than Dish' offer of USD 25.5 billion. 

Softbank and Sprint said in a joint statement that Sprint's directors have unanimously determined that the proposal submitted by Dish is not reasonably likely to lead to a superior offer. Sprint shareholders were scheduled to vote on the offer on 12 June, but this has now been rescheduled to 25 June.

The new agreement raises the price per Sprint share to USD 7.65 from USD 7.30. Softbank is funding an increased cash element of the offer by reducing the amount it will invest in 'New Sprint' following the takeover, from USD 4.9 billion to USD 1.9 billion, as well as contributing an extra USD 1.5 billion in capital to the bid.  

Dish said in a statement that it made a "formal proposal" to Sprint on 15 April and was still meeting regularly with the company as it conducts due diligence. It will study the new Softbank offer and consider its strategic options. 

Categories:

Mobile

Companies:

Sprint Nextel,  Softbank,  Dish Network

Countries:

Japan,  United States

Tags:

Wireless, M&A buyouts & divestments

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