DISH Makes offer to buy Sprint (Rescinded)

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Maybe Charlie should pull out and let SoftBank go bankrupt (yen:dollar ratio) and later get Sprint for less.


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Dealpolitik: Dish Losing the Sprint for SoftBank http://blogs.wsj.com/moneybeat/2013...-losing-the-sprint-for-softbank/?mod=yahoo_hs It's Your Move Charlie Ergen http://www.bloomberg.com/video/it-s-your-move-charlie-ergen-98Zy9gR_R2GABJco97hPWA.html?cmpid=yhoo June 11 (Bloomberg) -- After SoftBank raised its offer for Sprint to $21.6 billion last night, the spotlight returns to Ergen, the Dish Network chairman who made an unsuccessful $25.5 billion counterbid in April. Glass Lewis Managing Director Warren Chen speaks with Erik Schatzker on Bloomberg Television's "Market Makers." (Source: Bloomberg) SoftBank raises Sprint offer, wins key shareholder support Reuters – 40 mins ago http://news.yahoo.com/softbank-raises-sprint-offer-wins-key-shareholder-support-101512478.html
 
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I am hearing now that the hold up with DISH is Sprint wants a 3 Billion dollar breakup fee from DISH if the sale is not approved by regulators, and DISH only is offering 1 Billion for the breakup fee.
 
Yespage said:
Why was Dish's bid "unsuccessful"? Hasn't been voted on... neither has the Softbank deal.
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it's currently unsuccessful. There's no vote scheduled for whatever Dish offered. Dish has a lot of work to do in terms of getting a real offer on the table before shareholders vote and take the Softbank deal.

I was hearing this morning that a Dish-Sprint deal might cost a year or more of waiting for uncertain regulatory approval. Softbank's deal would close in a month.

I don't blame Sprint for wanting a huge breakup fee. Waiting another year to year and a half for government approval is very costly to them (in the event the deal doesn't close). AT&T/T-mobile had a massive breakup fee too.
 
http://www.bloomberg.com/news/2013-...to-falter-in-part-over-breakup-fee-issue.html

article about the breakup fee and the other issues. selected some quotes:

Sprint Nextel Corp. (S) demanded a $3 billion reverse breakup fee from Dish Network Corp. (DISH) during their merger talks, one of a series of disagreements that has kept them from reaching a deal, people familiar with the matter said.
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Dish’s failure to show committed financing and to make a definitive merger proposal concerned Sprint, according to a person familiar with the negotiations. Dish, on the other hand, was frustrated by what it perceived as Sprint’s slowness to deliver documents necessary to conduct due diligence and complete an offer, other people said.
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Dish’s Sprint Response
Dish Network (NASDAQ: DISH): Following a raised bid for Sprint (NYSE:S) from Japanese firm Softbank, Dish issued a statement simply saying: “We continue to believe that Sprint has tremendous value. We will analyze the revised SoftBank bid as we consider our strategic options.” The new offer increases the cash given to Sprint investors to $5.50 per share from $4.02 per share, raises SoftBank’s offer price for investor shares to $7.65 from $7.30, and raises the price of SoftBank’s $1.9 billion investment in Sprint to $6.25 per share from $5.25 per share.
 
That's Sprint mgmt. Don't shareholders still get to vote?



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What is the point of this breakup penalty ($1-3 million)? If outside parties, i.e. the government, deny the plan, the suitor has to pay?

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