Sprint Nextel Corp.'s talks regarding their merger with DISH Network Corp. backslided after a series of miscommunication and failed attempts to settle on an agreement. Sprit Nextel opened with a $3 billion demand reverse-breakup fee, prompting DISH Network to redo their proposal with only one week. Nextel's ultimatum expires on June 18.
DISH answered Sprint's proposal with $1 billion reverse-breakup fee, payable only if the merger fails to win approval, said people with information on the matter.
Sprint recently announced that it was dissatisfied with bids coming from DISH, and that SoftBank's "sweetened" proposal of $21.6 billion is winning them over.
The deadline is set next week. DISH is expected to produce its "best and final" offer to trump SoftBank's proposal.
Sprint is concerned with DISH's lack of commitment with regards to the financing of the merger, according to inside people. On the other hand, DISH argues that Sprint's sluggish pace in delivering necessary paperwork for the offer is slowing down the TV-satellite company's ability to generate a proposal.
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