This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

TheDeal: Softbank Increases Sprint Nextel Offer

Stocks in this article: S DISH

NEW YORK ( TheStreet) -- Japan's Softbank on Tuesday increased its agreed bid for Sprint Nextel (S) to $21.6 billion, offering $1.5 billion more as it attempts to ward off a competing, unsolicited approach from Dish Network (DISH).

Softbank said it would now offer the target's shareholders $7.65 per share, up from a previous $7.30 bid. In total, Sprint shareholders would receive $16.6 billion in cash.


Softbank said it is now targeting 78% of Sprint, up from a previous 70%. However, Sprint itself would only get a $5 billion injection under the new terms, down from a previously planned $8 billion infusion, to shore up its balance sheet.

The Japanese suitor said the sweetened deal was in direct response to a competing $25.5 billion offer from Dish Network. However, Sprint's board and a committee established to consider approaches -- including Dish's -- threw their weight behind Softbank.

"As a consequence of the lack of progress with Dish and the improved terms from Softbank, the special committee ended its discussions with Dish," Sprint said late Monday.

Sprint, of Overland Park, Kan., has postponed a vote on the Softbank deal to June 25 from June 12 and increased the breakup fee on the Softbank approach to $800 million from $600 million.

Dish, of Englewood, Col., quickly shot off its own missive: "We continue to believe that Sprint has tremendous value. We will analyze the revised Softbank bid as we consider our strategic options."

Softbank opened the bidding war for Sprint with a $20.1 billion offer in October. The Japanese mobile company run by Masayoshi Son hopes the deal will allow it to expand into the U.S. market. Sprint said the offer represents a 52% premium to the stock's share price before the first offer was unveiled.



Meanwhile, Charlie Ergen's Dish hopes to break into mobile telecommunications as the line between mobile, broadband and entertainment blurs. Acquiring Sprint would offer him more customers to peddle content to and new products to offer existing Dish clients.

-- Written by Andrew Bulkeley in New York.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!

Markets

DOW 17,796.09 +17.94 0.10%
S&P 500 2,064.50 +3.27 0.16%
NASDAQ 4,748.9970 +0.6010 0.01%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs