Dish Network values its offer at $7 a share, including $4.76 in cash and the remainder in its shares. The offer is 12.5 percent above Sprint Nextel’s closing share price on Friday.
“The Dish proposal clearly presents Sprint shareholders with a superior alternative to the pending SoftBank proposal,” Mr. Ergen said in a statement.
Mr. Ergen said a “Dish/Sprint merger will create the only company that can offer customers a convenient, fully integrated, nationwide bundle of in- and out-of-home video, broadband and voice services.”
Dish Network said it would be able to combine its existing broadband and TV offerings with Sprint Nextel’s cellphone operations, allowing it to better compete with rivals like Verizon that are moving into new areas in search of revenue.
Dish Network’s effort to take over Sprint is the latest of many moves toward consolidation in the highly competitive broadband industry. In 2011, AT&T tried to buy its rival T-Mobile USA, a move that was blocked by the Justice Department because of antitrust concerns. Last year, Verizon scored a deal with a group of cable companies that agreed to sell it spectrum licenses to build its wireless network in exchange for allowing them to sell their cable services inside Verizon stores.
Internet Censorship Law Triggers Yandex Tumble: Russia Overnight.
OAO Yandex (YNDX), Russia’s biggest Internet search engine, fell for a third day, leading a slump in the nation’s New York-traded shares, on concern lawmakers are preparing to ban access to some websites. RTS futures dropped.
Yandex retreated 2.7 percent to $18.35 yesterday in New York, completing the longest stretch of declines in a month. The Bloomberg Russia-US Equity Index (RUS14BN) of the most-traded Russian companies listed in the U.S. lost 0.4 percent to 88.12. The RTS stock-index futures expiring in September dropped 1.3 percent to 133,605.
The Duma, Russia’s lower house of the parliament, is scheduled to vote as soon as today on amending a law that bans access to websites that promote criminal activity against children such as pornography and illegal drugs. The Russian version of Wikipedia said yesterday that it temporarily shut its service in protest.
“Investors took it as a sign that Russia seeks to control Internet and may block even those websites that have nothing to do with any criminal activity,” Alexander Vengranovich, an analyst at Otkritie Financial Corp said by phone from Moscow yesterday. “People are concerned it may turn out to be a Chinese-style control over Internet by the government.”
The Market Vectors Russia ETF (RSX), the biggest U.S.-traded exchange-traded fund that holds Russian shares, lost 1.1 percent to $25.79, the lowest since June 28. The RTS Volatility Index, which measures expected swings in the index futures, rose 0.7 percent to 31.24.