updated 07:23 am EDT, Tue April 30, 2013
Masayoshi Son places $20.1B SoftBank offer above $25.5B rival bid
The CEO of SoftBank believes there is no need to change the Japanese carrier's offer to Sprint, following a secondary offer from Dish Network. Masayoshi Son, also the founder of the company, told the audience of an earnings briefing "There is absolutely no need for that since we believe our offer is above theirs."
The original offer of $20.1 billion for 70-percent of Sprint by SoftBank was trumped by Dish earlier this month, offering a larger $25.5 billion. In theory, if Sprint decides to take up the Dish offer, SoftBank could end up walking away from the investment $3.5 billion richer, thanks to profit from a $3.1 billion convertible bond and currency hedging.
During the SoftBank financial results, Son explained how his company's offer exceeded that of Dish in "eleven key areas," and that the total transaction is worth 21-percent more than the Dish proposal, despite the higher bid. Despite this, Reuters reports that lenders of SoftBank are open to providing additional financing if the company does change its mind and increase its offer.
While the SoftBank offer is likely to go through, considering the closeness to completion and SoftBank's belief that the acquisition could be completed by July 1st, the company is receiving support from other areas. Intel chief executive Paul Otellini has written to the FCC about the offer, calling the high-speed US national network a compelling prospect. "We need this competition in the wireless space as the ATT/Verizon model is not giving that to consumers at this time," said Otellini.