Dish bid for Sprint receives vote of confidence from investor
Dish Network Corp’s $25.5 billion bid for Sprint Nextel has received a vote a confidence from hedge fund titan and Sprint investor John Paulson.
Paulson, who is under pressure to make a clear win from his investment in Sprint, has reportedly said the Dish bid is a compelling offer.
Paulson & Co is reportedly Sprint’s fourth largest shareholder and its support for the Dish bid could go some way in helping the US satellite provider beat Softbank in the race to acquire a majority stake in Sprint.
“Dish is offering more value to Sprint shareholders and also is contributing valuable spectrum, 14 million subscribers, cost synergies and revenue synergies,” said Paulson.
Dish claims its unsolicited cash and stock bid can prove more beneficial than Softbank’s investment offer because it will enable customers to watch video through a combination of satellite services and through Sprint’s wireless network.
Sources state Sprint’s board is now assessing the Dish offer, and the move is seen in the market as the boldest move made yet by Dish chairman Charlie Ergen in utilising his recently acquired wireless spectrum.