Committee on Foreign Investment happy with Softbank, Sprint deal

30 May 2013

Japanese operator Softbank Corp’s proposed USD20.1 billion purchase of 70% of Sprint Nextel has reportedly received the backing of the Committee on Foreign Investment, a US interagency body headed by the Treasury and charged with overseeing deals in which a foreign entity gains control of a domestic company. According to Fierce Wireless the Committee has indicated that ‘there are no unresolved national security issues’ in Softbank’s projected deal. The news arguably represents a significant blow to rival suitor DISH Network, which set up a website, www.nationalsecuritymatters.com, to highlight its concerns as part of its public relations campaign aimed at undermining Softbank’s bid. DISH lodged an improved USD25.5 billion counterbid for Sprint, but has struggled to derail the Japanese firm’s early momentum.

United States, DISH Network, SoftBank Group Corp, Sprint Corporation (now part of T-Mobile US)