updated 08:17 am EDT, Tue April 16, 2013
Statement states companies in advanced approval stages
Japanese carrier SoftBank is expecting to complete its acquisition of Sprint by July, despite a sudden roadblock in the form of alternate offers to Sprint. A statement from Softbank providing a date for completion comes in the wake of Sprint receiving a second bid from Dish Network to merge, valued at $25.5 billion.
The statement, picked up by All Things D, states "SoftBank believes that the agreed terms of our transaction with Sprint offer Sprint shareholders superior short and long term benefits to Dish's highly conditional preliminary proposal. The SoftBank-Sprint transaction is in the advanced stages of receiving the necessary approvals, and we expect to consummate the transaction on July 1, 2013."
Though the acquisition is likely to go through, if Dish's offer was taken up instead, SoftBank could in theory walk away from the $20.1 billion investment $3.5 billion richer. Reuters notes that a $3.1 billion convertible bond SoftBank bought from Sprint last year would provide a profit of $1 billion, while currency hedging and the $600 million break-up fee would push the figure higher.