Japan's SoftBank on October 15, 2012 announced a $20 billion takeover of Sprint Nextel, a deal expected to close in mid-2013. Softbank will get a 70 percent stake in Sprint Nextel by buying $12.1 billion in existing shares, at $6.30 per share. Softbank will also buy $8 billion in new Sprint shares the Kansas City-based company will issue at $5.25 per share. If the deal doesn't go through, Sprint will receive a $600 million break-up fee.
However, Dish Network offered to buy sprint offering $7 a share. SoftBank countered Dish's offer on June 10, 2013 with a sweetened package--$16.6 billion to Sprint shareholders plus $5 billion in new capital--that includes:
* $7.48 per share
* A pledge from Sprint that any improved offer will be accompanied with "committed financing" (the pledge has been accepted by Sprint)
* Although not asked by SoftBank, Sprint went ahead on June 11, 2013, and included a "poison pill" that prohibits any outside investor other than SoftBank to acquire more than 17 percent of the company.
However, with sweetened offer, SoftBank will acquire 78 percent, instead of 70 percent, of Sprint.
On June 21, 2013, Dish Network ended its effort to acquire Sprint. Dish offered $25.5 billion to acquire all of Sprint as opposed to Softbank's $21.6 billion offer to own 78 percent of the new company.
On June 25, 2013, Sprint Nextel Corporation's shareholders approved the sale to Softbank.
However, Dish Network offered to buy sprint offering $7 a share. SoftBank countered Dish's offer on June 10, 2013 with a sweetened package--$16.6 billion to Sprint shareholders plus $5 billion in new capital--that includes:
* $7.48 per share
* A pledge from Sprint that any improved offer will be accompanied with "committed financing" (the pledge has been accepted by Sprint)
* Although not asked by SoftBank, Sprint went ahead on June 11, 2013, and included a "poison pill" that prohibits any outside investor other than SoftBank to acquire more than 17 percent of the company.
However, with sweetened offer, SoftBank will acquire 78 percent, instead of 70 percent, of Sprint.
On June 21, 2013, Dish Network ended its effort to acquire Sprint. Dish offered $25.5 billion to acquire all of Sprint as opposed to Softbank's $21.6 billion offer to own 78 percent of the new company.
On June 25, 2013, Sprint Nextel Corporation's shareholders approved the sale to Softbank.
