SoftBank Corp. said its deal to acquire a 70 percent stake in Sprint Nextel Corp. will be completed as planned despite a rival bid from Dish Network Corp.
In a briefstatement
on its website, the Tokyo-based wireless company said its Sprint deal is superior to the Dish bid both in the short term and long term. It called Dish’s offer a “highly conditional preliminary” proposal.
Analysts had said Monday that Dish’s offer was credible and likely to pressure SoftBank to raise its bid.
SoftBank, however, said it expects its current deal to progress to conclusion as is.
“The SoftBank-Sprint transaction is in the advanced stages of receiving the necessary approvals, and we expect to consummate the transaction on July 1, 2013, with the terms already agreed,” the statement said.
Dish had offered $25.5 billion to acquire all of Sprint in a deal that would merge the Overland Park-based wireless carrier with the Colorado-based provider of satellite television service.
SoftBank’s deal provides $20 billion for 70 percent of Sprint, leaving Sprint’s current owners with 30 percent ownership of Sprint. The Dish offer leaves them with 32 percent of the merged companies and provides more cash for the shares they give up.