With the Softbank merger looming, holders of just 3 percent of Sprint shares opt to remain Sprint shareholders. Sprint's merger deal with SoftBank might have received shareholder approval, but it appears the vast majority of those people have no desire to see what happens post-merger. Sprint announced on Monday that out of the more than 3 billion shares of Sprint stock outstanding, 97 percent of those who own them asked to cash out in the deal, rather than continue investing in "New Sprint." At the deal's closing, which is scheduled to be held on July 10, just 3 percent of current Sprint shareholders want to hold on to the company's stock. Related stories FCC approves Sprint-SoftBank deal Softbank said to win FCC approval for Sprint deal Sprint must face NY tax-fraud case, says judge Dish withdraws $6.3 billion offer for Clearwire Sprint to offer Windows Phone 8 devices with unlimited 4G LTE But here is where things get a little messy. More of Sprint's shareholders than expected opted to cash out. Sprint and SoftBank had previously decided to keep $16.64 billion in cash in reserve to pay off any shareholders who wanted out. Because the deal was "oversubscribed," Sprint now needs to offer a hybrid deal to all shareholders who only wanted cash. According to Sprint, when the deal closes on Wednesday, those who elected to receive cash will earn $5.65 and .26 shares of New Sprint common stock for every share they currently own. The 3 percent of shareholders who currently hold Sprint stock will receive a single share in New Sprint for each Sprint share they currently own.
With the Softbank merger looming, holders of just 3 percent of Sprint shares opt to remain Sprint shareholders.
Sprint's merger deal with SoftBank might have received shareholder approval, but it appears the vast majority of those people have no desire to see what happens post-merger.
Sprint announced on Monday that out of the more than 3 billion shares of Sprint stock outstanding, 97 percent of those who own them asked to cash out in the deal, rather than continue investing in "New Sprint." At the deal's closing, which is scheduled to be held on July 10, just 3 percent of current Sprint shareholders want to hold on to the company's stock.
Related stories
- FCC approves Sprint-SoftBank deal
- Softbank said to win FCC approval for Sprint deal
- Sprint must face NY tax-fraud case, says judge
- Dish withdraws $6.3 billion offer for Clearwire
- Sprint to offer Windows Phone 8 devices with unlimited 4G LTE
But here is where things get a little messy. More of Sprint's shareholders than expected opted to cash out. Sprint and SoftBank had previously decided to keep $16.64 billion in cash in reserve to pay off any shareholders who wanted out. Because the deal was "oversubscribed," Sprint now needs to offer a hybrid deal to all shareholders who only wanted cash.
According to Sprint, when the deal closes on Wednesday, those who elected to receive cash will earn $5.65 and .26 shares of New Sprint common stock for every share they currently own. The 3 percent of shareholders who currently hold Sprint stock will receive a single share in New Sprint for each Sprint share they currently own.
