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Sprint Nextel shareholders approve SoftBank bid | Sprint Nextel shareholders approve SoftBank bid |
(35 minutes later) | |
Japan's SoftBank will become one of the world's largest mobile operators after shareholders in Sprint Nextel backed its revised bid for a 78% stake in the business. | Japan's SoftBank will become one of the world's largest mobile operators after shareholders in Sprint Nextel backed its revised bid for a 78% stake in the business. |
SoftBank will pay $21.6bn (£13.9bn) for the stake in Sprint, which is the US's third-largest phone carrier. | SoftBank will pay $21.6bn (£13.9bn) for the stake in Sprint, which is the US's third-largest phone carrier. |
In its revised bid the Japanese firm increased its offer of cash payments to Sprint shareholders. | |
The deal is the largest overseas acquisition by a Japanese firm. | The deal is the largest overseas acquisition by a Japanese firm. |
"The transaction with SoftBank should enhance Sprint's long-term value and competitive position by creating a company with greater financial flexibility," Dan Hesse, chief executive of Sprint said in a statement. | "The transaction with SoftBank should enhance Sprint's long-term value and competitive position by creating a company with greater financial flexibility," Dan Hesse, chief executive of Sprint said in a statement. |
According to the deal, Sprint shareholders will have the option to receive either $7.65 in cash or one New Sprint common stock for each share of Sprint common stock they hold. The total cash consideration available to Sprint stockholders is $16.6bn. | |
US satellite TV operator Dish Network had also tabled a rival bid of $25.5bn for Sprint. | |
However, its offer - higher than that of SoftBank - would have increased Sprint's debt burden and was seen as more risky. | |
After receiving an improved bid from SoftBank, Sprint had given Dish till 18 June to submit an improved offer. | |
But last week Dish said it would not be submitting a new bid, claiming that Sprint's decision to cut short the time for Dish's due diligence meant it was "impracticable" for it to act further. |
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