SoftBank is expected to complete the transaction in June 2013 against Dish Network’s promise of mid 2014.
Moreover, SoftBank’s proposal is fully financed against Dish Network’s uncommitted financing.
The other major point emphasized by SoftBank is its telecom background and efficient business. Dish Network does not have a telecom background, the company said in a presentation.
SoftBank has global scale than Dish Network’s presence in select markets. The Japanese company does not have any strong litigation history. But Dish is well known for litigation, SoftBank says.
Dish Network chairman Charlie Ergen’s open letter (offer) to Sprint
The consideration of $25.5 billion consists $17.3 billion in cash and $8.2 billion in stock. Sprint shareholders would receive $7 per share, based upon Dish’s closing price on April 12, 2013. This consists of $4.76 per share in cash and 0.05953 Dish shares per Sprint share.
The cash portion of the proposal represents 18 percent premium over the $4.03 per share implied by the SoftBank proposal, and the equity portion represents approximately 32 percent ownership in the combined Dish/Sprint versus SoftBank’s proposal of a 30 percent interest in Sprint alone. Together this represents a 13 percent premium to the value of the existing SoftBank proposal.
Analysts’ responses to Dish Network’s $25.5 billion offer for Sprint
Dish Network, the # 2 U.S. satellite television provider, had offered to buy wireless service provider Sprint Nextel for $25.5 billion in cash and stock, a move that could inspire other telecommunications or video companies to consider their own prospects of combining.
Pix: Bloomberg
