Printed from http://www.electronista.com

Sprint and Dish merger talks halted, final Dish offer due on June 18

updated 10:29 pm EDT, Tue June 11, 2013

Sprint likely to merge with Japanese carrier SoftBank

Merger talks between Dish Network and Sprint seem to have come to an impasse. According to sources familiar with the matter, a number of disagreements have scuttled the multi-billion dollar deal -- including several reverse-breakup fees payable if the takeover failed to achieve regulatory approval. Sprint claims that Dish failed to generate an "actionable" bid for the company. The inability to make a deal puts the matter back into SoftBank's hands, which had offered $21.6 billion to acquire Sprint, America's fourth-largest cellular network carrier, in October.

Dish is now left with a June 18 deadline to make its final, completely financed, offer for the carrier. Dish's inability to show solid financing and make a merger proposal allegedly helped end the deal as it stands. Sprint allegedly was slow to deliver merger-related documents, complicating the offer process.

The offer from Dish would see Sprint shareholders receive $7 per share, consisting of $4.76 in cash and approximately one-twentieth of a Dish share, with the equity portion representing 32 percent ownership in the new company. It is claimed that the cash and stock offer, an 18 percent cash premium and two percent ownership increase, represents a 13 percent premium over SoftBank's offer.

Softbank will be buying $8 billion worth of Sprint shares directly from Sprint, and tendering for another $12 billion worth of shares from existing holders. The company is currently offering $5.25 per share, a small premium over Sprint's current price.

Softbank is said to be hoping to build on Sprint's spectrum position, with the goal of acquiring more spectrum and other operators as time goes on. The deal, as it is currently structured, does not require a stockholder vote.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Plantronics Rig Surround 7.1 headset

Trying to capture the true soundscape of video games can be a daunting task. Looking to surround-sound home theater options, users hav ...

Kenu Airframe +

Simple, stylish and effective, the Kenu Aiframe + portable car mount is the latest addition to Kenu's lineup. Released earlier this ye ...

Adesso Compagno X Bluetooth keyboard

The shift from typing on physical keyboards to digital versions on smartphones and tablets hasn't been an easy for many consumers. Fro ...

Sponsor

toggle

Most Commented

 
toggle

Popular News