It’s a small step, but in the right direction as far as Dish Network is concerned. The satellite company says that it received a non-disclosure agreement from Sprint Nextel, which makes it easier for the companies to share private information that might strengthen Dish Network’s offer. The Sprint board’s Special Committee examining the unsolicited $25.5B offer – designed to top SoftBank’s $20B acquisition proposal — says that it is “reviewing this offer in good faith,” according to Dish. Company Chairman Charlie Ergen adds that he’s “confident that the Sprint board will share our view that this proposal is superior.” A combination with Sprint “will benefit from synergies and growth opportunities estimated at $37 billion in net present value that are not attainable through the pending SoftBank proposal.” The company’s financial adviser Barclays says that it’s confident it can raise the cash. Dish shares are down 1.4% in after hours trading, potentially wiping out the gain it made during the trading day.
In a move that could potentially thwart SoftBank’s proposed $20B acquisition of 70% of Sprint Nextel, Dish Network has made an unsolicited $25.5B offer for the U.S. number three mobile services provider. Dish chairman Charlie Ergen said today that his company’s cash and stock bid is “a superior alternative to the pending SoftBank proposal.” Ergen, who has been amassing spectrum rights to launch his own wireless broadband network, also addressed the Clearwire situation. In October 2012, Sprint had begun negotiating to gain control of the portion of Clearwire it does not alredy own, in a deal that was seen as crucial to Softbank’s planned acquisition of Sprint. In January, Dish made an unsolicited bid for the wireless communications company. In a statement today, Ergen said, “Though not a condition of our proposal, we anticipate that the pending transaction with Clearwire would be completed.” Sprint shares were up in pre-market trading. The full Dish announcement is below:
DISH Network Corporation (NASDAQ: DISH) today announced that it has submitted a merger proposal to the Board of Directors of Sprint Nextel Corporation (NYSE: S) for a total cash and stock consideration of $25.5 billion. The DISH proposal clearly represents superior value to Sprint shareholders, including greater ownership in a combined company that is better positioned for the future with more spectrum, products, subscribers, financial scale and new opportunities.
Dish‘s unsolicited and non-binding offer values Clearwire at $3.30 a share totaling $5.15 billion for all of Clearwire. The per-share price tops a previous bid by Clearwire’s majority shareholder Sprint Nextel by around 11%, according …
Sprint Nextel is negotiating to gain control of Clearwire via agreements with its wireless broadband partner’s other investors, the Wall Street Journal reports. The talks would allow Sprint to gain control of Clearwire’s board without acquiring it. Gaining control …
UPDATE, 4:58 PM SUNDAY: CNBC is reporting that Softbank will pay $20 billion for a 70% stake in Sprint, citing sources close to the deal. Although details are still being worked out, the deal is expected to be announced tomorrow morning after the boards of both companies ratify the agreement this evening. Terms of the deal call for Softbank to buy $8 billion worth of shares directly from Sprint at a price of $5.25 each plus tender for another $12 billion worth of shares from existing holders at a price of $7.30 per share. Sprint’s current price is $5.73. While a related Sprint purchase of Clearwire is not likely to be announced tomorrow, sources say the company is working on it and needs to insure Clearwire is under its control prior to closing the Softbank deal.
PREVIOUSLY, THURSDAY PM: Backfield’s in motion among the wireless and wireless broadband companies that have become so important to the infotainment industry.