SoftBank raised its offer for control of Sprint...
SoftBank raised its offer for control of Sprint Nextel Monday to $21.6 billion in an attempt to prevail over a counteroffer from Dish Network. SoftBank’s revised bid would buy 78 percent of Sprint; SoftBank’s initial $20.1 billion offer would have…
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involved only 70 percent of the No. 3 U.S. wireless carrier. SoftBank’s revised offer also increased the amount of cash involved by $4.5 billion to $16.6 billion (http://bit.ly/13UZWC7). Sprint subsequently delayed a shareholder vote on SoftBank’s bid, which had been set for Wednesday, to June 25. The carrier said its board and special committee determined Dish’s proposal “is not reasonably likely to lead to a ’superior offer.'” Sprint had been engaged in due diligence talks with Dish since May 21 over its proposed $25.5 billion counteroffer, but has ended all discussions with the company because it has “not put forward an actionable offer,” Sprint said (http://bit.ly/13UZWC7). SoftBank’s revised bid won the support of hedge fund Paulson & Co., Sprint’s second-largest stockholder, which had previously supported Dish’s counteroffer. Paulson now intends to vote all of its 231 million shares in favor of SoftBank, referring in a statement to the company’s “expertise in the wireless area and a strategic vision which will make Sprint a formidable competitor in the future” (http://prn.to/18pVBNz). Dish said in a statement that it “will analyze the revised SoftBank bid as we consider our strategic options.” Following SoftBank’s revised offer for Sprint, top minority Clearwire stockholder Crest Financial asked Clearwire’s board to allow stockholders to reject Sprint’s buyout offer for Clearwire and pursue a “direct, competitive bidding process” that includes full consideration of Dish’s counteroffer for at least 25 percent of the company (http://bit.ly/13V8fxN). Clearwire stockholders are set to vote on Sprint’s bid Thursday. SoftBank’s revised bid for Sprint shows its desire for Clearwire’s spectrum “has only increased,” and Clearwire stockholders “should therefore receive the benefit of SoftBank’s sweetened deal,” Crest Financial said in a news release. “If Sprint wishes to accomplish its plan of locking up Clearwire for its ultimate suitor, it must pay an adequate price that reflects the true value of the Company." -- JP