The American satellite TV provider DISH has submitted a merger proposal to Sprints board of directors which it says represents a 13 per cent premium on a rival bid from Japanese telco SoftBank.

The partnership would enable the company to provide its joint customer-base with combined in- and out-of-home video, broadband and voice services in the US. DISH has offered $25.5bn (£16.7bn), consisting of $17.3bn in cash and $8.2bn in stock, 13 per cent more than the $20.1bn offered by Softbank last year for a 70 per cent stake.

The Softbank deal appeared all but sealed when it was announced in Tokyo by executives from both companies in October, although Sprint shareholders and US regulators were yet to give it the final stamp of approval.

Sprint CEO, Dan Hesse, said of the Softbank deal at the time: “This is a transformative transaction for Sprint that creates immediate value for our stockholders, while providing an opportunity to participate in the future growth of a stronger, better capitalised Sprint going forward. Our management team is excited to work with SoftBank to learn from their successful deployment of LTE in Japan as we build out our advanced LTE network, improve the customer experience and continue the turnaround of our operations.”

Sprint shareholders would take 32 per cent ownership in the combined DISH/Sprint operation, while the SoftBank proposal offered just 30 per cent interest in the US telco. DISH says that the partnership would present estimated growth of $37bn, including around $11bn in cost savings.

“The DISH proposal clearly presents Sprint shareholders with a superior alternative to the pending SoftBank proposal,” said Charlie Ergen, chairman of DISH Network. “Sprint shareholders will benefit from a higher price with more cash while also creating the opportunity to participate more meaningfully in a combined DISH/Sprint with a significantly-enhanced strategic position and substantial synergies that are not attainable through the pending SoftBank proposal.”
“This unique, combined company will have a leadership position in video, data and voice and the necessary broadband spectrum to provide customers with rich content everywhere, all the time,” he added.

Sprint confirmed that it has received an unsolicited proposal from DISH Network to acquire the Company. The company said that its Board of Directors will evaluate this proposal carefully and consistent with its legal duties. The company does not plan to comment further until the appropriate time.

Barclays is acting as financial advisor to DISH.