By Kim Hjelmgaard
Dish Network is launching a $25.5 billion bid for Sprint Nextel.
The offer is an attempt to scupper Softbank of Japan’s acquisition of the major U.S. wireless carrier.
Dish said it’s offer is superior to the Japan firm’s.
Dish will reportedly offer $4.76 in cash and $2.24 in Dish stock for each Sprint share. The offer reflects Friday’s closing price.
In pre-market trades on Monday, Sprint shares leaped over 13%.
“Dish is in play,” said Charles Ergen, the firm’s chairman, in an interview in New York with The Wall Street Journal. “We think we’ve made an offer that’s much more compelling than the Softbank transaction.
Softbank is seeking approval from U.S. authorities for its $20 billion purchase of a 70% stake in Sprint Nextel that would be Japan’s biggest foreign acquisition ever.
Dish Network said that its offer is a 13% premium to the existing SoftBank proposal.
Filed under: News from the Soul Brother
