Sprint Drama: Who’s Supporting SoftBank Now?

Sprint

Institutional Shareholder Services had advised Sprint Nextel Corp. (NYSE:S) to accept the sweetened offer from SoftBank, which raised its bid for Sprint from $20.1 to $21.6 billion on Tuesday.

ISS found in its report that the SoftBank offer fairly values the company, and will provide the capital needed to help Sprint expand its network, allowing the third-largest wireless operator in the country to compete with its rivals AT&T (NYSE:T) and Verizon Wireless (NYSE:VZ). The new SoftBank bid still doesn’t top Dish Network’s (NASDAQ:DISH) $25.5 billion offer for the company, which has left some investors to wonder if SoftBank is undervaluing Sprint.

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The recommendation from ISS, the largest proxy advisory firm, could sway those hesitant investors. A shareholder vote is the last major hurdle for SoftBank to overcome. The Japanese SoftBank has gotten national security clearance after Dish launched a pointed campaign claiming the company’s purchase of Sprint would cause national security to be compromised. Sprint’s shareholder meeting has been pushed back to June 25 as the company waits on a response from Dish.

“As terms have improved, and no other firm competing bids are currently available to shareholders, ISS continues to recommend shareholders vote for the transaction,” the firm said late on Tuesday.