DISH Network has presented what it deems a "superior alternative" to the board of Sprint to merge the two companies in a combined cash and stock deal valued at $25.5 billion, DISH announced today.
DISH is offering Sprint shareholders $17.3 billion in cash and $8.2 billion in DISH stock, based on DISH's closing price on Friday. Sprint shareholders would receive total value of $7 per share in the proposal meant to top Softbank's offer.
The merger offer from DISH is equal to $4.76 cash per share -- which it labels as an 18% premium over the implied $4.03-per-share offer of Japan-based Softbank for 70% of Sprint -- and 0.05953 DISH shares for each outstanding share of Sprint stock, which would be equal to a 32% equity position in the combined company. The entire deal, according to DISH, is 13% higher than Softbank's offer to Sprint shareholders.
Executive chairman of DISH, Charlie Ergen, said in a statement: "Sprint shareholders will benefit from a higher price with more cash while also creating the opportunity to participate more meaningfully in a combined DISH/Sprint, which will benefit from a significantly enhanced strategic position and substantial synergies that are not attainable through the pending SoftBank proposal."
According to the announcement, a combined DISH/Sprint would result in approximately $11 billion in cost savings due to synergies between the two companies, and would be equal to a net present value of $37 billion.
The article DISH Proposes $25.5 Billion Merger With Sprint originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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