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) 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."
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