Dish Network’s merger talks with Sprint Nextel collapsed after a series of disagreements, including Sprint demanding a $3 billion reverse-breakup fee, people familiar with the matter said, leaving the satellite-TV company with just a week to regroup and try again.
Dish had countered with a $1 billion reverse-breakup fee, which would be paid if the takeover didn’t win regulatory approval, said one of the people, who asked not to be identified because the discussions were private.
Sprint announced this week that Dish failed to produce an “actionable” bid, leading the carrier to endorse a sweetened $21.6 billion offer from SoftBank, which originally agreed to acquire Sprint in October.
Dish now faces a June 18 deadline to submit what Sprint has described as a “best and final” fully financed counteroffer.
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Dish’s failure to show committed financing and to make a definitive merger proposal concerned Sprint, according to a person familiar with the negotiations.
Dish, on the other hand, was frustrated by what it perceived as Sprint’s slowness to deliver documents necessary to conduct due diligence and complete an offer, other people said.