SoftBank chief executive Masayoshi Son has said that his company will not increase its bid for Sprint because it is already offering the better deal than Dish. Masayoshi believes that Dish Network’s competing offer for the company will delay the carrier’s turnaround and leave it riddled with debt, The Wall Street Journal reported. He noted that SoftBank has experience in the telecommunications industry, unlike Dish, which will prove useful in helping Sprint return to profitability. Dish claims that its $25.5 billion bid offers a premium over SoftBank’s proposal, however the executive said that belief is “totally wrong” and “incomplete and illusory.”
“Our price offer is better than theirs. Our timing is one year quicker at least. Our leverage is much more healthy,” he sad, adding that Dish’s financing is “uncommitted.”
Dish is offering Sprint shareholders $4.76 in cash and roughly $2.24 in Dish stock for each Sprint share for a total of $7, compared to SoftBank’s cash-and-stock offer that is valued at $6.22 per share. Despite this comparison, Masayoshi still claims SoftBank’s offer is superior, noting the two deals cannot be compared apples-to-apples.
He pointed out that SoftBank plans to inject $8 billion into Sprint whereas Dish will bring “zero” capital, adding that SoftBank would deliver $2 billion in annual cost savings due to its increased leverage with manufacturers.
Masayoshi also said after regulatory delays, breakup fees and transaction costs that SoftBank’s bid would actually be 21% higher than Dish’s, claiming it would come to $7.65 per share and Dish’s would be lowered to $6.31 per share.
Sprint is currently exploring both options and recently received a waiver from SoftBank allowing it to hold discussions with Dish to learn more about its competing proposal.
