Sprint Forms A Committee To Review Dish Network’s Unsolicited Proposal
Sprint has formed a special committee that will be reviewing the unsolicited bid from Dish Network. Dish Network made a $25.5 billion bid to acquire Sprint Nextel last week in an effort to outbid Japanese mobile company, SoftBank. Dish Network’s offer is a 13% premium on the SoftBank deal.
This past October, SoftBank made the contract to buy 70% of Sprint with a promise to invest $20.1 billion into the company. Of that amount, $12.1 billion would go towards Sprint’s shareholders and $8 billion will go towards the company’s balance sheet. A couple months later, Sprint made an offer to acquire Clearwire for $2.2 billion.
The acquisition offers from SoftBank and for Clearwire was supposed to be decided by the Federal Communications Commission by next month, but this will likely be put on hold until the Dish Network is properly reviewed.
Sprint said that shareholders “need not take any action at this time in response to DISH’s proposal pending review by Sprint’s Special Committee.”
The special committee includes Larry C. Glasscock, James H. Hance Jr., V. Janet Hill, William R. Nuti, and Rodney O’Neal. Glasscock will be the chairman of the committee.