May 9 Japanese telecoms group SoftBank Corp expects more than $3 billion in annual cost savings by 2017 if it succeeds in its battle with Dish Network Corp to buy Sprint Nextel, a securities filing showed.
Dish, the No.2 satellite television provider in the United States, has offered to buy Sprint for $25.5 billion in cash and stock, which could scupper SoftBank's proposed acquisition.
SoftBank's cost savings projection comes after Dish said that its offer is more compelling because it would achieve $11 billion in cost savings and create a national provider of video, broadband and voice services.
"SoftBank's synergies, plus its $8 billion primary investment, will accelerate Sprint's ongoing turnaround and position it to become the U.S. wireless industry's technology and operational leader," SoftBank said in a filing with the U.S. Securities and Exchange Commission late on Wednesday.
SoftBank said that the combined entity can also cut capital expenditure by 32 percent to 36 percent. Sprint shareholders are scheduled to vote on the SoftBank deal on June 12.