US satellite-television provider DISH Network on Monday launched an unsolicited $25.5 billion bid to acquire Sprint Nextel, trying to derail the offer by Japan's SoftBank to buy 70 percent of Sprint. DISH said it was offering to buy Sprint, the third-largest US wireless carrier, for $17.3 billion in cash and $8.2 billion in stock.
"The DISH proposal clearly presents Sprint shareholders with a superior alternative to the pending SoftBank proposal," said Charlie Ergen, chairman of DISH Network, in a statement. "Sprint shareholders will benefit from a higher price with more cash while also creating the opportunity to participate more meaningfully in a combined DISH/Sprint with a significantly-enhanced strategic position and substantial synergies that are not attainable through the pending SoftBank proposal."
The DISH bid challenges SoftBank's October offer to acquire 70 percent of Sprint for $20 billion. That would mark the biggest overseas acquisition by a Japanese firm, but the deal still needs a green light from US regulators, who are seeking to insure the SoftBank merger does not pose problems for national security. DISH said taking over Sprint would create a unique company that could deliver a fully integrated, nation-wide bundle of video, broadband and voice services whether in the home or on the move.