SoftBank-Sprint Merger Clears National-Security Hurdle

The Committee on Foreign Investment in the United States, CFIUS, has notified Sprint Nextel (NYSE: S  ) and Japanese telecom SoftBank that the committee's investigation of their proposed merger deal has found no unresolved national security issues, the companies announced today.

SoftBank is faced with a rival bid for Sprint from satellite TV provider DISH Network (NASDAQ: DISH  ) , which has been saying SoftBank's involvement with China is a national security threat.

In a news release dated May 23, DISH general counsel Stanton Dodge said, "The contrast is clear: DISH does not operate infrastructure dependent on Chinese equipment; DISH does not own nearly a third of the Chinese e-commerce giant, Alibaba; DISH was not affiliated with a company that admitted bribing Chinese officials for telecommunications contracts."

Softbank has bid $20.1 billion for a 70% share of Sprint. DISH has bid $25.5 billion for the company.

Next up, says Sprint, is the completion of the reviews by the "Team Telecom" agencies, including the Department of Justice, FBI, and Department of Homeland Security. Those agencies will then pass on their findings to the Federal Communications Commission, which will determine whether the transaction is in the public interest.

Besides regulatory agency approval, the Sprint-SoftBank merger still has to gain approval of Sprint's stockholders. A vote is set for June 12.

link


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2458482, ~/Articles/ArticleHandler.aspx, 9/20/2014 8:25:41 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 23 hours ago Sponsored by:
DOW 17,279.74 13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASD 4,579.79 -13.64 -0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/19/2014 3:59 PM
DISH $64.98 Down -0.56 -0.85%
DISH Network Corpo… CAPS Rating: *
S $6.88 Up +0.03 +0.44%
Sprint CAPS Rating: **

Advertisement