SoftBank’s Buy of Majority of Sprint Approved by Sprint Shareholders
Sprint Nextel shareholders approved SoftBank’s buy of 78 percent of the U.S.’s third-largest wireless carrier. FCC approval is expected shortly, industry and FCC officials say. Industry sources said they have been told that an order approving the merger moved from the Wireless Bureau to the office of acting Chairwoman Mignon Clyburn, though a spokesman for Clyburn declined to comment.
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Sprint said 98 percent of the votes cast at a special shareholders meeting Tuesday supported the transaction, representing some 80 percent of Sprint’s outstanding common stock as of April 18. On June 10, Japan’s SoftBank raised its bid for Sprint to $21.6 billion from $20.1 billion and raised the cash component of the deal by $4.5 billion (CD June 12 p16).
"We are pleased to have the overwhelming support of Sprint shareholders,” a SoftBank spokeswoman said. “We look forward to receiving FCC approval and promptly completing the transaction so that we can begin implementing our plans to deploy an advanced Sprint network that supports innovative devices and service packages tailored to the rapidly expanding mobile needs of U.S. consumers.” Sprint CEO Dan Hesse said: “The transaction with SoftBank should enhance Sprint’s long-term value and competitive position by creating a company with greater financial flexibility.” Reuters reported that the shareholder meeting in Overland Park, Kan., was sparsely attended.
Clearwire shareholders are slated to vote on their part of a broader deal July 8, as Sprint tries to buy the rest of that company. Last week, Sprint raised its bid for Clearwire to $5 per share from $3.40 per share, trumping Dish Network’s offer of $4.40 per share. Dish has effectively taken itself out of the running to buy Sprint.