US DTH provider Dish Network has been given the okay to carry out due diligence on Sprint Nextel following its US$25.5bn offer for the wireless operator in April.
Under its US$20.1bn merger agreement with rival bidder Softbank, struck in October,…
US DTH provider Dish Network has been given the okay to carry out due diligence on Sprint Nextel following its US$25.5bn offer for the wireless operator in April.
Under its US$20.1bn merger agreement with rival bidder Softbank, struck in October, Sprint’s special committee required permission to give any rival bidder non-public information.
“We look forward to engaging in full due diligence and continued discussions with Sprint,” said Dish chairman Charlie Ergen.
Last week Dish was reported to be on the brink of securing US$9bn in committed financing for its bid for Sprint, which Ergen saw as the last hurdle before he could get his hands on the books.
Sprint’s board continues to recommend Softbank’s bid and its special committee is yet to share its thoughts on Dish’s rival proposal. The number three-wireless operator’s shareholders are set to vote on Softbank’s offer at an EGM on 12 June.
“We are providing this waiver because we are confident in the value of our transaction, and to ensure that Sprint and Softbank can move quickly and with no risk of delay or confusion, towards implementing our detailed investment plans,” Softbank Holdings president Ron Fisher said.
“We continue to believe that our agreed transaction, which we plan to close in approximately six weeks, creates substantially greater value and provides far greater certainty for Sprint shareholders.”
Sprint’s co-lead financial advisers are Citigroup, Rothschild and UBS. Its special committee is being advised by BofA Merrill Lynch.
Softbank is being financially advised by The Raine Group, Mizuho and Deutsche Bank.
Dish is being advised by Barclays which is providing debt financing alongside Jefferies, Macquarie and Royal Bank of Canada.
