Deals

Softbank bumps its Sprint bid to $21.6B

Sprint store

Japanese telecom company SoftBank is sweetening its offer to purchase the third largest wireless carrier in the U.S.: Sprint.

Yesterday, SoftBank increased its offering price to $21.6 billion for a 78 percent stake in Sprint. The move is a counter to a $25.5 billion offer that Dish Networks made back in April, which has caused Sprint shareholders to reconsider their negotiations with the Japanese company.

Softbank’s new offer essentially shifts $1.5 billion that was originally intended to go to Sprint once the deal closed. Now, that money will go to shareholders, meaning they’ll make more money than they were originally offered ($7.65 per share, or 5 percent more).

“The amended agreement announced today delivers more upfront cash to Sprint stockholders while still achieving our goal of creating a well-capitalized Sprint that is better positioned to bring meaningful competition to the U.S. market,” SoftBank CEO Masayoshi Son said in a statement.

SoftBank is likely to win support from shareholders because it can close the deal much faster (in less than a month) than Dish, which would need several months to complete the deal. Sprint shareholders are scheduled to vote on SoftBank’s new offer June 25, while Dish has until June 18 to submit a counter or finalized offer.

Via New York Times; Photo via thedarkthing/Flickr