Dish Won't Submit Revised Bid For Sprint by Deadline

Dish Network Corp. (DISH) said it won't submit a revised offer for Sprint Nextel Corp. (S) by the wireless carrier's Tuesday deadline, saying it is is "impracticable" to do so.

In a statement, the satellite TV provider said it continues to see strategic value in a merger with Sprint, but that it won't make a new offer by Tuesday because of Sprint's decisions to prematurely terminate the due diligence process and accept extreme deal protections in a revised agreement with SoftBank Corp. (9984.TO).

Dish said it will consider its options with respect to Sprint and will focus its efforts and resources on completing its tender offer for Clearwire Corp. (CLWR).

The lack of a new offer from Dish appears to clear SoftBank's path to acquire Sprint and gain its sought-after toehold in the rapidly changing U.S. wireless industry, which is seen as offering more opportunities than the Japanese company's more saturated market at home.

But it also leaves Dish and its Chairman Charles Ergen to plot his next move to become a larger player in the U.S. wireless industry, where he envisions creating a company that can offer a complement of services -- video, high-speed Internet and voice -- from one company, whether consumers are at home or on the go.

SoftBank last week upped its offer for Sprint by $1.6 billion to $21.6 billion. The amount was less than the $25.5 billion offered by Dish in April, but SoftBank's proposal was seen as providing more certainty to shareholders by upping the cash portion of its offer to $16.6 billion from $12.1 billion. Sprint's board unanimously approved the offer, and scheduled a June 25 shareholder vote on it.

If Sprint shareholders approve the deal, Sprint and SoftBank anticipate the merger will close in July.

As part of the revised agreement with SoftBank, Sprint had cut off talks with Dish but set a Tuesday deadline for Dish to submit its "best and final" offer. Dish still may submit a new bid after Tuesday, but under the terms of the revised SoftBank offer, Sprint can no longer terminate SoftBank's offer. SoftBank could go directly to shareholders and request a vote.

While SoftBank has taken a big step forward in its pursuit of Sprint, Clearwire remains a potential wrinkle in the complicated deal-making saga involving Dish. Dish is currently competing with Sprint to buy the mobile broadband provider in which Sprint holds a controlling stake. Dish late last month upped it offer for Clearwire to $4.40 a share, which tops Sprint's offer of $3.40 a share.

Sprint on Monday filed a lawsuit against Dish to try to block its tender offer for Clearwire. Dish said the lawsuit was a diversion by Sprint.

Sprint shares fell 2.2% to $7.16 in after-hours trading, while Dish shares rose five cents to $39.14. Clearwire added a penny to $4.57.

Write to Nathalie Tadena at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires