DISH Network Abandons Its Bid For Sprint

DISH Network Abandons Its Bid For Sprint
By Dish_Network.svg: DISH Network LLCderivative work: Fry1989 eh? 21:45, 2 February 2012 (UTC) (This file was derived from Dish Network.svg:) [Public domain], via Wikimedia Commons

DISH Network Corp (NASDAQ:DISH) dropped out of the bidding to buy mobile phone carrier Sprint Nextel Corporation (NYSE:S), paving the way for Sprint Nextel Corporation (NYSE:S)’s acquisition by SoftBank Corp (PINK:SFTBF) (TYO:9984).

DISH Network Abandons Its Bid For Sprint

The Douglas Country-based satellite TV company, DISH Network Corp (NASDAQ:DISH), didn’t submit a new offer for Sprint Nextel Corporation (NYSE:S) by the Tuesday deadline. Late Tuesday, the satellite TV company said it was “impracticable” to meet the deadline.

Carlson Capital’s Double Black Diamond Jumps On Energy Sector Holdings

Black DiamondClint Carlson's hedge fund, Carlson Capital's Double Black Diamond strategy, gained 1.04% net of fees in the month of September. Following this performance, the fund has returned 9.87% net of fees for the year to the end of the month. Q3 2021 hedge fund letters, conferences and more The Double Black Diamond strategy makes up Read More

SoftBank’s $25.5 Billion Offer

Last week, SoftBank Corp (PINK:SFTBF) (TYO:9984) agreed to enhance its offer for Sprint Nextel Corporation (NYSE:S) by 7.5 percent to $21.6 billion to counter DISH Network Corp (NASDAQ:DISH)’s unsolicited proposal of $25.5 billion.

According to the revised offer, Japan’s SoftBank Corp (PINK:SFTBF) (TYO:9984) will pay $16.6 billion to Sprint Nextel Corporation (NYSE:S)’s shareholders and infuse $5 billion of new capital for a 78 percent stake. The revised deal would facilitate shareholders get more money while Sprint Nextel Corporation (NYSE:S) gets less cash.

The revised deal with Sprint Nextel Corporation (NYSE:S) offered DISH Network Corp (NASDAQ:DISH) a June 18 deadline to submitting a best and final offer.

Sprint Nextel Corporation (NYSE:S)’s board of directors earlier unanimously approved the Tokyo-based mobile phone carrier’s improved offer. The third-largest U.S. wireless carrier indicated that DISH Network Corp (NASDAQ:DISH)’s proposal is not actionable and not reasonably likely to a superior offer.

The Tokyo-based mobile-phone carrier’s sweetened offer also got support from hedge fund Paulson & Co, the second largest Sprint Nextel Corporation (NYSE:S) shareholder.

DISH Network To Focus On Clearwire

DISH Network Corp (NASDAQ:DISH), however, indicated it continues to see strategic value in a merger with Sprint Nextel Corporation (NYSE:S).

DISH Network Corp (NASDAQ:DISH) said it would now focus, instead, on its bid for the wireless carrier Clearwire Corporation (NASDAQ:CLWR). DISH Network Corp (NASDAQ:DISH) has offered $4.40 per share to acquire Clearwire, which is 29 percent higher than the sweetened bid provided by Sprint Nextel Corporation (NYSE:S).

Earlier,DISH Network Corp (NASDAQ:DISH) got a boost when Clearwire Corporation (NASDAQ:CLWR)’s board has announced that it is backing DISH Network Corp (NASDAQ:DISH)’s bid over Sprint Nextel Corporation (NYSE:S)’s offer.

The satellite operator could still submit a new bid for Sprint Nextel Corporation (NYSE:S), but under the terms of the revised deal with SoftBank Corp (PINK:SFTBF) (TYO:9984), Sprint Nextel Corporation (NYSE:S) can no longer terminate SoftBank Corp (PINK:SFTBF) (TYO:9984)’s offer. SoftBank Corp (PINK:SFTBF) (TYO:9984) could go directly to shareholders and request a vote.

Updated on

No posts to display