US pay-TV provider Dish Network Corp (NASDAQ:DISH) said it would end its pursuit of domestic telecoms group Sprint Nextel Corp (NYSE:S), clearing the way for rival suitor SoftBank Corp’s (TYO:9984) improved USD21.6bn (EUR16.5bn) deal to buy 78% of the target.
Sprint, which had previously rejected Dish’s USD25.5bn cash-and-stock offer made in April, is due to vote on SoftBank’s revised deal on 25 June. The Japanese suitor has said it would fund the transaction with available cash and debt.
Last week Dish said it would not make a revised offer for Sprint by the 18 June deadline but would evaluate its options regarding the target as it still saw strategic value in a combination.
In connection with the withdrawal of its bid, Dish said in a regulatory filing that it would redeem a total of USD2.6bn in debt, maturing in 2017 and 2023, which it had raised to finance the proposed acquisition.