Free Newsletter

Sprint forms team to consider rival bids

New committee of board members to consider whether Dish Network's takeover offer is superior to Softbank's

By CAROLINE GABRIEL

Published: 23 April, 2013

READ MORE: M&A | US | Sprint Nextel Corporation

Sprint has formed a 'special committee' to consider Dish Network's takeover bid, amid speculation that Softbank, whose offer for 70% of the cellco has already been accepted, will not raise its price.

The committee consists of several Sprint board members, chaired by Larry Glasscock, and indicates that the operator is at least taking the new offer seriously. It needs to decide whether the pay-TV giant's proposition is superior to that of the Japanese cellco.


The former is for 100% ownership and brings more cash, which would be welcome to accelerate Sprint's LTE roll-out, and it would also introduce the potential to add video and quad play services to improve competitiveness with Verizon and AT&T. The combined spectrum holdings would be a significant advantage, but the new entity would have a far higher debt mountain than the Softbank-Sprint partnership.

Softbank, if it does not up its bid, would still promise significant expertise in one of the world's most advanced mobile broadband markets and the chance for Sprint to take part in the Japanese company's influential industry alliances, which bring benefits such as roaming and common handset procurement (especially in TD-LTE, where Softbank has a similar network to that of Sprint's Clearwire venture). Clearwire's plentiful unpaired 2.5GHz spectrum, long undervalued by Sprint, is of key interest to both bidders and Dish had previously mounted a bid for a majority stake in the WiMAX-turned-LTE provider, in opposition to Sprint's own offer for full control.

Softbank's deal is worth $20.1bn - $12.1bn to acquire 70% of Sprint's shares, the rest to invest in the cellco's growth, particularly its Network Vision program. Dish's bid offers $25.5bn for full control.

Softbank insists its deal is superior and it says it is confident will still be able "to consummate the transaction on July 1, 2013" as planned. However, some analysts think this will only happen if the cellco ups its stakes. According to a Bloomberg report, though, Softbank is not likely to raise its offer. Citing an unnamed executive at the Japanese carrier, the news service said the proposal will not chance and Softbank will concentrate on persuading investors and board members of the"superior short and long term benefits" compared with Dish's "highly conditional preliminary proposal".

Related Stories

Share

  • email story Email
  • print story Print
  • digit digit
  • facebook facebook
  • Twitter Twitter
  • Linked-in Linked-In
  • Comments (0)

COMMENTS

Add Comment
No comments yet. Be the first to add a comment!
MARKET PLACE

    BYOD: Market Analysis and Forecasts

    An in-depth insight into the rise of BYOD policies within the enterprise and analysis of the impact the trend will have on IT departments,...

    Voice Command, Control and Search on Mobile Phones: Market Analysis & Forecasts

    This report provides a comprehensive insight into the growing importance of voice command, control and search on handsets, analysing...

    Data Centre Network Equipment: Market Analysis and Forecasts

    This report provides a global assessment of the data centre network equipment market. Besides assessing the key market trends, sub-markets...

    HetNet Market Summary & Forecasts: Macro Cells, Small Cells & Wi-Fi Offload

    Carriers are struggling to cope with the explosion of data traffic on their networks, and the additional deployment of LTE and legacy...

    Over-the-Top Communications: Threats & Opportunities for Mobile Operators

    This report examines the implications of widespread adoption of mobile over-the-top IP communications for mobile operators, handset...

    Portable Gaming Consoles: Market Analysis and Forecasts

    This report provides a global assessment of the PGC market. In addition to assessing the key market drivers, market barriers, vendor...
WHITE PAPERS

    Satellite Phones: Will Dual Mode Help the Phoenix Rise from the Ashes?

    Satellite phones have followed an arduous path since their much-hyped launch more than a decade ago. The hype was followed by an e...

    Mobile Widget Platform Market Analysis: Understanding the Business Case and ROI

    This white paper presents an analysis of the mobile widget platform market, as well as metrics supporting a mobile carrier?s busin...

POST COMMENT

You must be a registered user to post a comment. or
Username *
Email *
Comment *