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Dish's $25.5 billion Sprint bid may force others to act

Monday, the 2nd U.S. satellite TV provider Dish Network Company available to buy wireless service provider Sprint Nextel Corp. for $ 25.5 billion in cash and stock, a move that could inspire other telecommunications or video companies to consider the prospects for the combination of .
The Dish offer may be better than the Japanese wireless carrier Softbank to buy 70% of Sprint in October to $ 20.1 billion.
Softbank, which is the only investment advice on Sprint's cuisine is committed to bring the technical advantages - being able to watch video anytime, anywhere through a combination of satellite services of Sprint's wireless network.
Dish surprise, unsolicited bid is the wave of consolidation in the U.S. wireless industry, carriers are crazy efforts combined, the establishment was the latest twist on the more powerful network and competitive market leader Verizon Wireless and AT & T
This is by far the most bold step dish Chairman Charlie Ergen, who spent billions of dollars of wireless spectrum in the past few years, Sprint, Clearwire's offer counter-offer, with a wealth of wireless spectrum majority by Sprint.
Sprint shares soared as high as 17.8%, nearly four and a half high, slightly topped the value of vegetables bid.
BTIG analyst Walter Piecyk said the the dish move could lead to other transactions. "Everything should be on the table when you have a major player in this movement a part of the business to buy another part of the business of the major players, as a combined entity, said:" Piecyk.
Piecyk said, "If you are a competitor, you do not make a move, this is a lost opportunity" refers to the other telecommunications and video provides some - but not all - of what food and Sprint merger will provide .
Other analysts agreed that a combination of vegetables and Sprint may change the wireless market.
Bill Menezes, principal research analyst at Gartner Inc., "The idea, said:" The dishes can take this huge spectrum holding, and soon it as mobile data services product does add a new competitor elements landscape.
Dish's bid plate stock, including $ 4.76 in cash and 0.05953 shares for each share of Sprint. $ 7 per share offer, Sprint last Friday's close, a premium of approximately 12%.
Zhe Ergen said: "This is the result of many years of work, whether it is buying spectrum to enter the auction, Sling Media's acquisition of all of these things come together, and now with the merger with Sprint, with analysts and reporters on a conference call .
Welcome to shareholders Offering,
Sprint said it would assess the proposal, but declined to comment further. Welcome dishes offer some Sprint shareholders.
"It seems than Softbank protocol, and it provides more value, said:" Roy Behren, in Westchester capital, merger arbitrage investor's investment manager. "We are in favor of any transaction provides excellent value."
The Behren Company 140,000 Sprint shares held by the end of 2012, according to the latest publicly available information.
Other investment managers also responded positively to the 25 shareholders of the company before the sprint Zhe Ergen quote.
"It makes very good sense, because he brings more than Softbank bunch of different levels on the table, said:" The investment manager, who asked not to be named approved to speak to the media.
"I vote for the dish transactions more value," said the manager, who saw the dish and Sprint merged in a better position to compete, even though they will be more than 70%, which is a Sprint's high leverage Softbank.
Some analysts say the disk offer may result in a bidding war with Softbank, improved bid may be expensive because of the recent decline in the value of the yen.
Apples to apples comparison is difficult because of the Softbank Sprint only buy some analysts said, In fact, the yen has decreased by 20% compared to October last year, will be a complicating factor.
13% of the premium
Dish, its offer is 13% greater than Softbank, as of last Friday's share price and exchange rate based on. It is not immediately clear how accurate comparison, though, because of the Softbank offer the part of a number of steps, not all, Sprint.
Dish's offer will leave Sprint shareholders, the combined company 32% ownership. According to Softbank transactions, they will own 30% of the Sprint.
Softbank is not immediately Dish bid meets a comment. Softbank chief executive Masayoshi Son is known to be fierce competitors, Zhe Ergen, analysts eagerly awaiting his response disk offer.
The dish fell 2.3 percent, to close on Monday, trading at $ 36.77, while Sprint rose 13.5%, or 84 cents, after the end of trading rose to $ 7.06 and a high of $ 7.33 earlier in the session.
'Smaller players'
The combination of disk and Sprint will have 63.1 million retail customers and annual revenues of $ 5,000,000,000, dish said in a regulatory filing.
Play for Sprint came together in the past few months, the vegetables start to think about alternatives to get more spectrum, according to a source familiar with the matter.
As far as the dish want a wireless partners, analysts said, Sprint also need to be addressed, and compete more effectively.
"There is a realization of the smaller players in the U.S. market, they need to merge or partner against Verizon and AT & T, which is not only such a powerful business and network quality to compete," said the consultancy firm CCS telecommunications analyst Keith Waterman insight.
Barclays Bank as financial advisor to the dish, which indicates that it intends to finance its balance sheet, as well as debt financing of $ 8.2 billion in cash bid. Earlier this month, dishes priced at U.S. $ 2.3 billion debt issuance program more than twice.
Board sent a letter to the Sprint, vegetables, said it had received "a high degree of confidence in the Letter from Barclays Bank financing to raise the necessary funds, the plate will not have any difficulties. Dish, it would have to raise a total of approximately $ 930 million in new sources of funding, although its structure has not yet been determined.
Analysts said they believe provides a good strategic move on the part of Dish, although it is a potentially expensive.
Forget to do, the next step is how Sprint bidding war, and how much it expensive? Dish has synergies Softbank (), said: "Vijay - Jayant, ISI Group analyst .
 
 



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