Japans Soft Bank Gains On U.S. Dish Network
SoftBank Corp (TYO:9984) rose up 4.2 percent as it looked likely to win the takeover battle for Sprint Nextel (NYSE: S). U.S. Dish Network Corp (NASDAQ: DISH) recently withdrew its new offer to buy Sprint. Shares of SoftBank rose 4.2 percent in Tokyo. SoftBank was the top gainer as Japan’s Nikkei closed 1.8 percent higher at 13,245.22 points, the highest since June 12.
SoftBank is one of the world’s largest telecommunications companies. The company is poised to push the biggest merger and acquisition deals in the industry since 2006. Bloomberg News states “Deals announced by major telecoms already amount to more than $80 billion.”
The consumer demand has shifted away from areas such as home internet access. Telecommunication companies are now working to expand their technologies, meeting competitive demands in emerging trends such as integrating gamification, video conferencing, high speed networks and leveraging mobile.
SoftBank-Sprint statement’s invited shareholders of Sprint last week to vote on the M&A deal on June 25. Last month US national security officials approved SoftBank's takeover with the exception of having to appoint a Sprint board of directors director of security. The Dish-SoftBank immobilization would pose national security risks.
Paulson & Co, Sprint's second-largest shareholder, said it supports SoftBank’s offer stating the company has "exceptional operating expertise". SoftBank’s recent confirmed revised bid would offer Sprint shareholders $21.6 billion from $20.1 billion last week.
Japan’s SoftBank plans have encouraged new cost savings for Sprint equipment such as smartphones and will offer its own expertise in wireless technology. SoftBank has proven to overcome its challenges in attempt to acquire Sprint after its rival, Dish Network Corp. declined to takeover. Japan's Nikkei average reached a one-week high last Wednesday. SoftBank’s recent market gains have showed investors promise towards the takeover of Sprint Nextel.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.