SoftBank hikes bid for Sprint to $21.6 billion

SoftBank amended its offer to give shareholders more cash, while Sprint said it had ended talks with rival bidder Dish

By , IDG News Service |  

Sprint's special committee has met with Dish on its offer and disclosed financial details to the company. But in Monday's release, the committee dismissed Dish's chance for a successful bid. "Despite the Special Committee's diligence, Dish has not put forward an actionable offer," the press release said. "As a consequence of lack of progress with Dish and the improved terms from SoftBank, the Special Committee ended its discussions with Dish and will request that Dish destroy all of the Sprint confidential information made available in the course of its diligence."

Under SoftBank's revised merger offer, Dish has until June 18 to make its "best and final" offer, the companies said.

The modified SoftBank bid would leave the Japanese company with 78 percent of Sprint's stock and current shareholders 22 percent, versus the 70:30 split in the previous deal. Also under the amended offer, Sprint's termination fee to SoftBank if the deal doesn't go through could rise from $600 million to $800 million in certain circumstances, the press release said.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

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