Seeking Alpha

Some details about SoftBank/Sprint: 55% of existing Sprint (S +0.5%) shares will be purchased at...

Some details about SoftBank/Sprint: 55% of existing Sprint (S +0.5%) shares will be purchased at $7.30/share for $12.1B. Another $8B will be spent to obtain Sprint shares (via new stock and a convertible bond) at $5.25 apiece. SoftBank will also get a warrant to buy 55M shares at $5.25. The deal is expected to close in mid-2013. Though Sprint isn't required to take any action regarding Clearwire (CLWR +20.3%), that $8B could facilitate a future deal, while allowing Sprint to pay down part of its $21B debt load. Dan Hesse will remain Sprint's CEO.
Comments (9)
  • So they're buying the shares directly from Sprint? What does this mean for shareholder shares?
    15 Oct 2012, 09:40 AM Reply Like
  • I am not a fan of this deal.
    15 Oct 2012, 09:42 AM Reply Like
  • so what is going to happen to my shares?
    15 Oct 2012, 09:46 AM Reply Like
  • Why are ppl so crazy about clwr if s is not obligated to buy out clwr?
    15 Oct 2012, 09:48 AM Reply Like
  • CLWR is the main prize.
    15 Oct 2012, 10:35 AM Reply Like
  • This may mean that S can finally kick CLWR to the curb. Hesse will hold a much stronger hand now. It seems to me he has always been somewhat of a reluctant player with CLWR. Reminds me of the movie "Step Brothers."
    15 Oct 2012, 10:02 AM Reply Like
  • How much would be the value of one of the NEW SPRINT share.?
    15 Oct 2012, 11:17 AM Reply Like
  • I hope they don't literally call it "New Sprint" like New Coke and, I wish they would hurry up and drop the Nextel from the name.
    15 Oct 2012, 02:47 PM Reply Like
  • Now that's funny. I don't care who you are. Well as long as you have made at least some money.
    15 Oct 2012, 02:58 PM Reply Like
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