This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Dish Offers to Buy Sprint for $25.5 Billion: Ahead of the Ticker

NEW YORK ( TheStreet) -- Dish Network (DISH - Get Report) is offering to buy Sprint Nextel (S) for $25.5 billion. The offer beats a current bid of $20 billion for the company from Japan's Softbank.

Dish is offering $17.3 billion in cash and $8.2 billion in stock. Sprint shareholders would receive the equivalent of $7 a share, based on Dish's closing price on Friday. Dish calls its bid a "13% premium to the value of the existing SoftBank proposal."

SoftBank made its offer for a 70% stake in the company six months ago. U.S. regulators are currently reviewing the bid.

According to Dish Chairman Charlie Ergen, the company hopes to broaden its business by offering integrated bundle packages through the acquisition.

The company believes the deal would generate about $11 billion in cost savings.






In other news, Citigroup (C - Get Report) reported first-quarter earnings that beat analysts' expectations.

Citigroup reported a 31% rise in first-quarter profit on revenue growth in its securities and investment banking division.

The company reported net income of $3.8 billion, or $1.23 per share, for the quarter, up from $2.9 billion, or 95 cents per share, a year ago.

Analysts had been expecting earnings of $1.17 per share before accounting adjustments.

This was the company's first full quarter under Chief Executive Michael Corbat.

In a statement, Corbat said, "Achieving consistent, high-quality earnings is one of my top priorities and these results are encouraging. During the quarter, we benefited from seasonally strong results in our markets businesses, sustained momentum in investment banking, continued year-over-year growth in loans and deposits in Citicorp, and a more favorable credit environment."

Excluding accounting adjustments, net income rose to $4 billion, or $1.29 per share, in the quarter, from $3.4 billion, or $1.11 per share, a year ago.

Total revenue rose 6% in the quarter, though revenue in North America fell to $5.1 billion from $5.2 billion in the same quarter a year ago.

Corbat acknowledged difficulties the bank still faces, saying, "The environment remains challenging and we are sure to be tested as we go through the year."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
LIFE $76.04 -0.04%
C $53.07 0.00%
DISH $69.26 0.00%
S $5.11 0.00%
TMO $132.10 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs