Sprint Nextel Corp. said its board has formed a special committee to evaluate a takeover bid from Dish Network, which is seeking to counter an offer from SoftBank Corp.
Larry Glasscock, James Hance, Janet Hill, William Nuti and Rodney ONeal will serve on the committee, with Glasscock acting as chairman, Sprint said Monday in a statement. Bank of America Merrill Lynch will act as its financial adviser, and Shearman & Sterling LLP will be the legal counsel.
Dish, the satellite-TV company controlled by billionaire Charlie Ergen, offered $25.5 billion for Sprint last week, topping a $20.1 billion bid by Tokyo-based SoftBank in October. The Japanese company has argued that its bid has superior short- and long-term benefits compared with Dishs highly conditional preliminary proposal.
Dish said it welcomed the committee review and was open to meeting with Sprints board.
Sprint shares closed unchanged at $7.17 on Monday. The stock has climbed 26 percent this year. Dish gained 2.8 percent to $40.10.
Dish is offering $4.76 in cash and 0.05953 of a Dish share for each Sprint share. At todays close, that offer is worth $7.15 a share. Sprints higher stock price indicates investors expect a bigger bid.