Dish enters the battle for Sprint with $25.5bn offer
Nikhil Kumar is The Independent's New York correspondent. He was formerly assistant editor on the foreign desk and has also done a variety of jobs on the city desk, where he wrote about markets, commodities and other business and economics topics.
Monday 15 April 2013
The American satellite TV group Dish has entered the race to merge with Sprint Nextel, the mobile-phone business that comes with precious wireless spectrum rights, tabling a $25.5bn (£16.65bn) bid that could thwart an earlier offer by Japan’s SoftBank.
The bid comes as companies in the telecoms and media business in the US seek to expand by amassing as much wireless spectrum as they can get their hands on.
Late last year, the Japanese telecoms and media conglomerate, which wants to gain a foothold in the US, agreed to buy 70 per cent of Sprint in a deal worth around $20bn.
But Dish says it is offering more with its cash-and-stock proposal. The cash portion of Dish’s offer, worth $4.76 per share, totals to around $17.3bn. The equity element, meanwhile, represents approximately 32 per cent ownership of the combined Dish-Sprint business. Dish said this compares favorably to the SoftBank proposal, which would give existing Sprint shareholders a 30 per cent share of the combined SoftBank-Sprint business.
“The Dish proposal clearly presents Sprint shareholders with a superior alternative,” Dish chairman Charlie Ergen said yesterday.
Overall, Dish said its bid offered a 13 per cent premium to the deal currently on the table.
Combining with Sprint would give Dish the option of bundling its existing broadband and TV services with the mobile-phone services offered by Sprint. It would thus allow it to compete more effectively with the two big beasts in the US telecoms market: AT&T and Verizon.
Dish said Sprint’s move did not mean it had withdrawn its $15.5bn counter-offer for Clearwire after the wireless-network operator agreed to sell itself to Sprint last year. Sprint already owns a 51 per cent stake in Clearwire.
Missing Malaysia Airlines Flight MH370: Wreckage could be found within a week as search reaches 'very critical juncture', says minister
South Korea ferry disaster: Released transcripts show chaos and confusion in the moments before ferry sinks
Unbeliebable: The White House offer 'no comment' to anti-Justin Bieber petition
Loch Ness Monster found on Apple Maps?
South Korea ferry disaster: Families watch as remains of Sewol victims returned to shore
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
'Sinful': Video of British Muslims dancing to Pharrell Williams's hit Happy comes under attack
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
Abdullah Deghayes: My son was the martyr of a just cause, says father of British teenager killed in Syria conflict
An open letter to Nigel Farage: you may smile, but I am not seduced
- 1 Jose Mourinho: Graceless reaction of Chelsea manager a sad effort to hide his own flaws
- 2 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 3 Unbeliebable: The White House offer 'no comment' to anti-Justin Bieber petition
- 4 Loch Ness Monster found on Apple Maps?
- 5 Shropshire criminals ‘using unmanned drones and infrared cameras to find illegal cannabis farms’ – and then steal from the growers
iJobs Money & Business
Negotiable: Harrington Starr: Database Team Lead ( Leadership, Sybase, Compute...
£40000 - £50000 per annum + Bonus+Benefits+Package: Harrington Starr: C#.NET D...
£25000 - £35000 per annum + Bonus+Benefits+Package: Harrington Starr: VB.NET S...
£45000 - £55000 per annum + Bonus and Benefits: Harrington Starr: Trade Suppor...