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Dish Bid Divides Sprint Lenders, Owners

Investors praise takeover offer, while bondholders worry about hike in leverage.

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Sprint Nextel Corp. bondholders are at odds with shareholders from Leon Cooperman to John Paulson who’ve praised a takeover bid from Dish Network Corp. that may amplify the largest junk issuer’s debt load by 31 percent.

Average yields for Sprint’s $20 billion of bonds, which had plunged 1.33 percentage points to 4.64 percent since the third-largest U.S. mobile-phone company said in October it may receive a “substantial” investment from Softbank Corp., have jumped 0.31 percentage point this week following Dish’s unsolicited offer. That contrasts with a 15 percent stock surge for Sprint.

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