Sprint Nextel shareholders have been offered a better deal by SoftBank in an attempt to stave of Dish Network’s chances of taking over the wireless carrier. Softbank increased their offer to Sprint shareholder to $21.6 billion.
The Japanese wireless carrier is controlled by Masayoshi Son, its CEO. The new offer increases by 7.5% the original offer that SoftBank had presented.
Under the deal’s terms, SoftBank would pay Sprint shareholders $16.6 billion and provide the new company $5 billion in working capital for an overall stake of 78% in the U.S. carrier.
SoftBank in their statement said the new company shares would have a value of $7.65 each, rising from its initial offer that valued the shares at $7.30 for a stake of 70%.
Dish Network offered Sprint $25.5 billion or about $7 per share, which consisted of cash and stock of $4.76 a share and ownership of 32%.
Dish Network’s CEO Charlie Ergen said his firms bid was far superior. However, officials at Sprint said the offer was considered not actionable and gave Dish Network a June 18 deadline to make its best and final offer.
Dish announced it would analyze the new SoftBank offer and consider its strategic options.
On June 25, shareholders at Sprint will meet to vote on the proposal from SoftBank.
Besides the ongoing Dish-Sprint-Softbank negotiations, both Dish Network and Sprint are trying to secure Clearwire shares.
Sprint offered the carrier a deal of $3.40 per share to take control of the 49% of stock it does not already have, while Dish has offered a bid of $4.40 per share, which values Clearwire at over $6.5 billion.