Sprint Nextel Corporation (NYSE:S) yet undecided on merger
The United States wireless carrier, Sprint Nextel Corporation (NYSE:S) has not yet decided which acquisition offer to accept. With just a day left for the shareholders of the company to vote on the Soft Bank Corp. offer of $20.1 billion, Sprint Nextel Corporation (NYSE:S) is still uncertain on whether to accept the rival offer of $25.5 billion from Dish Network Corp.
In line with the rival offer, Soft Bank Corp. had recently raised its bid by 7.5 percent to $21.6 billion for the third largest wireless carrier of the United States. Despite the higher offer from Dish Network Corp., the company had not made it clear as to how the $25.5 billion offered for the merger would be funded. This makes the lower offer of the Japanese firm much more solid.
As per the announcement made by Soft Bank Corp, the company would pay $16.6 billion to the shareholders of Sprint Nextel Corporation (NYSE:S) and would inject the remaining $5 billion of its remaining bid as new capital for the development of the company. This $21.6 billion offer would ensure the Japanese firm with 78 percent stake in Sprint Nextel Corporation (NYSE:S).
The shareholders of Sprint Nextel Corporation (NYSE:S) had however been asked to hold from voting on the offer of Soft Bank Corp. until the board of directors of the US wireless carrier throws light on the details of the $25.5 billion offer from Dish. However, the company in a joint release made on Monday with Soft Bank Corp. had announced that the board of directors and the Special Committee on acquisition at Sprint Nextel Corporation (NYSE:S) had unanimously approved the increased bid of $21.6 billion from Soft Bank Corp. and had thereby recommended the shareholders to vote for the same.
The shares of Sprint Nextel Corporation (NYSE:S) had continuously been surging since it received acquisition offers from the two bidding companies. The shares of the third largest wireless carrier in United States had surged by 2.37 percent to close at $7.35 per share for the end of last trading session on Tuesday.