Sprint Nextel shareholders approve SoftBank bid

Softbank Corp President Masayoshi Son at a news conference to announce the deal Softbank founder Masayoshi Son has had to fight off stiff competition to acquire the stake

Related Stories

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.

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 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.

More on This Story

Related Stories

From other news sites

* May require registration or subscription

The BBC is not responsible for the content of external Internet sites

More Business stories

RSS

Features & Analysis

  • French luxury Tea House, Mariage Freres display of tea pots Tea for tu

    France falls back in love with tea - but don't expect a British cuppa


  • Woman in swimming pool Green stuff

    The element that makes a familiar smell when mixed with urine


  • People take part in an egg-cracking contest in the village of Mokrin, 120km (75 miles) north of Belgrade, Serbia on 20 April 2014In pictures

    Images from around the world as Christians mark Easter Sunday


  • Female model's bottom in leopard skin trousers as she walks up the catwalkBum deal

    Why budget buttock ops can be bad for your health


From BBC Capital

Programmes

  • An aerial shot shows the Olympic Stadium, which is closed for repair works on its roof, in Rio de Janeiro March 28, 2014.Extra Time Watch

    Will Rio be ready in time to host the Olympics in 2016? The IOC president gives his verdict

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.