Dish Network Corp., the satellite-TV company controlled by Charlie Ergen, made an unsolicited $25.5 billion offer for Sprint Nextel Corp., topping a Softbank Corp. bid for the third-largest U.S. wireless carrier.
Sprint investors would get $7 a share, including $4.76 in cash, a stake representing about 32 percent of the combined company, Englewood, Colorado-based Dish said today. While the offer is 13 percent above Sprint’s April 12 closing price, the stock climbed above $7 in New York trading today, suggesting that investors expect the bidding to go higher.
Dish’s offer extends a frenzy of consolidation for the U.S. wireless industry. Smaller carriers are seeking out merger partners to help wage a stronger attack against the two dominant competitors, Verizon Communications Inc. and AT&T Inc.