Dish Launches $25.5 Billion Merger Proposal To Spring Nextel

<p>ENGLEWOOD, COLORADO (BNO NEWS) -- DISH Network Corporation on Monday announced that it has submitted a merger proposal to Sprint Nextel Corporation for a total of $25.5 billion.

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<p>The proposal was submitted to Sprint Nextel's the Board of Directors, and it consists of $17.3 billion in cash and $8.2 billion in stock.

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<p>The bid comes after Japanese phone company Softbank had previously made a proposal to take over 70 percent of the Sprint Nextel, the third largest telecom company in the United States, for $20 billion. However, it is still pending a U.S. approval.

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<p>"The DISH proposal clearly presents Sprint shareholders with a superior alternative to the pending SoftBank proposal," said Charlie Ergen, Chairman of DISH Network. "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."

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<p>The possibility of DISH merging with Sprint Nextel would allow customers to acquire high-speed home internet connection along with with wireless services.

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<p>"This unique, combined company will have a leadership position in video, data and voice and the necessary broadband spectrum to provide customers with rich content everywhere, all the time," Ergen added.

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<p>The proposed combination will result in synergies and growth opportunities estimated at $37 billion in net present value, including an estimated $11 billion in cost savings.

</p> <p> (Copyright 2013 by BNO News B.V. All rights reserved. Info: [email protected].) </p>