Monday, the second-largest U.S. satellite TV provider Dish Network Company, to buy the wireless service provider Sprint Nextel Corp. company valued at $ 2.55 billion in cash and stock, it may inspire other telecommunications or video companies to consider their own prospects for combining .
The purchase of the disk may be better than in October by the recommendations of the Japanese wireless carrier Softbank to buy 70% of Sprint for $ 20.1 billion.
Recommended only with Softbank, Sprint's investment, the dish is a promising technology, the benefits for the customer - be able to watch video anytime, anywhere via satellite services combined with Sprint's wireless network.
Disk unsolicited bid latest twist a wave of merger, the U.S. wireless industry, local operators are frantically trying to combine, in order to establish a more powerful network and competition in the market leading provider Verizon Wireless and AT & T company's most daring The step has not yet disc Chairman Charlie Ergen, who has spent several billion dollars of wireless spectrum in the past few years, Sprint is Clearwire's bid to counter-offer, rich spectrum wireless communications company Sprint has a majority stake.
Last Monday, Sprint shares rose 17.8 percent to nearly four half-height, slightly breakthrough dish bid.
DEAL TRIGGER
BTIG analyst Walter Piecyk said the the dish move may lead to other transactions. "Everything should be on the table, he said:" When you have a major mobile service major players, which as part of the merged entity in another part of the business is the purchase of the main participants.
"If you're a competitor, you do not make a move, this is a lost opportunity," Piecyk added, referring to the telecommunications and video provides some - but not all - what kind of a combination plate, Sprint will available.
Other analysts agree that a combination of Sprint's wireless market may change.
Bill Menezes, chief research analyst for Gartner Inc., "The idea, said:" That dish can take advantage of this huge spectrum holding soon use it as a mobile data service products that increase a new competitor elements the landscape.
Dish bid includes $ 4.76 in cash and 0.05953 shares of stock in each Sprint shared dish. The acquisition project, $ 7 per share, Sprint's last Friday closing premium of approximately 12%.
Ergen said: "This is after many years of work, whether to buy spectrum into the auction, the acquisition of Sling Media, all these things come together with Sprint merged with analysts and reporters on a conference call.
Shareholders welcome offer
Sprint said that will evaluate the proposal, but declined to comment further. Some of Sprint's shareholders welcome the dish offer.
"It seems Softbank agreement, which provides more value," says Roy Behren, Harvest Capital, the investment manager of the merger arbitrage investors. "We are in favor of any transaction provides excellent value."
The Behren company 1400000000 Sprint shares held at the end of 2012, according to the most recent publicly available information.
Another investment manager has made a positive reaction to the ears of the company's offer for a 25 Sprint shareholders. "It makes very good sense, because he has brought to the table more Softbank bunch of different levels, said:" The investment manager, who asked not to be named, approved by circumstances to speak to the media.
"I will vote trading more value, and said:" managers, who saw the merger vegetables and Sprint in a more favorable competitive position, even if they are more highly leveraged than Sprint 70% Softbank owned.
Some analysts say, the the dish offer may lead to a bidding war with Softbank, even if improved bid may be expensive because of the recent decline in the value of the yen.
Although Apple and Apple is more difficult, because Softbank buy Sprint just one part, analysts said the yen reduced by 20%, compared to October last year, will be a complicating factor.
13% premium
The disk said, its offer for 13%, greater than Softbank, as of last Friday's stock prices and exchange rates based on It is not immediately clear how accurate quote compared because Softbank offer more than one part of the steps, but not all of Sprint.
Disk offer will leave Sprint, 32% of the shares, the shareholders of the combined company. In the the Softbank agreement, they will have 30% of Sprint.
Softbank said in a statement that the agreement will be reached with Sprint Sprint shareholders of the Company to provide superior short-term and long-term interests of the condition of the disc's preliminary recommendations.
"The the Softbank-Sprint transaction is in advanced stages of obtaining the necessary approvals, we expect to consummate the transaction on July 1," it added.
Softbank's billionaire founder and chief Masayoshi Son (Masayoshi Son) is a fierce competitor, the suggestible, analysts do not expect he will quietly go away.
The disk fell 2.3%, at $ 36.77, and Sprint a year-on-year increase of 13.5%, or 84 cents, to close at $ 7.06, after rising to $ 7.33 as early as in. Softbank shares fell 7% (Tuesday) afternoon ? 4,360 in Tokyo.
"To achieve the smaller players,
An antenna and Sprint will have 63.1 million retail customers and annual revenues of $ 5 billion, the dish is a file submitted to the regulatory authorities.
Sprint play come together in the past few months, the dishes began to think of alternatives, in order to get more spectrum, according to a familiar source.
More vegetables to a wireless partner, analysts said, an agreement, Sprint also need to compete more effectively.
"There is a realization among the smaller players in the U.S. market, they need to merge or partner Verizon and AT & T, which is both so powerful business and network quality competition," said Keith Hartman, telecommunications analysis division at consultancy CCS Insight.
Barclays Bank as financial adviser to the dish, which means that it intends to provide funding bid for the $ 82 billion U.S. dollars in cash, its balance sheet debt financing. Earlier this month, set the price of $ 2.3 billion bond issuance program more than twice.
Dish Sprint's board of directors in the letter, said it has received "very confident the letter" Barclays financing, which indicates that the disk will not have any difficulty to raise the funds it needs. Dish, said the new funds, but has not yet determined its structure, in order to raise a total of about $ 9.3 billion.
Analysts said they believe provides a good strategic move, part of the dish, but a potentially expensive.
Forget to do the next thing to do is how Sprint company bidding war to go expensive it is how to get it? Disk synergies Softbank (with), said: "ISI Group analyst Vijay - Jayant.
 



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