NEW YORK, April 16 Hedge fund titan John Paulson
said Dish Network Corp's $25.5 billion bid for Sprint
Nextel Corp is a compelling offer, a vote of confidence
that could help the U.S. satellite TV provider beat rival suitor
SoftBank Corp of Japan.
"Dish is offering more value to Sprint shareholders and also
is contributing valuable spectrum, 14 million subscribers, cost
synergies and revenue synergies," said Paulson, whose fund is
Sprint's fourth-largest shareholder, in a statement to Reuters.
Dish, the No.2 U.S. satellite TV company, made its
unsolicited cash-and-stock offer for the wireless service
provider on Monday, hoping to trump Japanese wireless operator
SoftBank's proposal in October to pay $20.1 billion in cash for
70 percent of Sprint.
While SoftBank is proposing only an investment in Sprint,
Dish says its offer will benefit customers by allowing them to
watch video anywhere, anytime through a combination of its
satellite service with Sprint's wireless network.
Paulson & Co. has turned in a rocky performance of late,
putting pressure on Paulson to deliver a clear win from his
Sprint's board is studying the Dish offer, the company said
on Monday. Its stock rose 1.98 percent to 7.20 on Tuesday,
bringing the company's value to $21.68 billion.
Dish's bid is the boldest step yet by Chairman Charlie
Ergen, who has spent billions of dollars on wireless spectrum in
the last few years.