Boston, MA 10/21/2013 (wallstreetpr) – A new office is coming up for Sprint Corporation (NYSE:S) at the Silicon Valley after its takeover by the Japanese financial institution SoftBank Corp. It is understood that there is a feeling to inject some “inventive spirit” into the new outfit that results from the planned merger. And the place to achieve that is the technology hub of Silicon Valley, the birth place of the world’s greatest tech brains and companies.
At Silicon Valley, the new S will be expected to have at least 1,000 more employees. For the past several weeks, executives from both ends have held a series of meetings at the planned venue of new S and SoftBank offices in Silicon Valley. SoftBank is a Japanese company with offices in Tokyo while Sprint is headquartered in Kansas. It looks like the planned merger is spoiling for a grueling war with its competitors in the industry.
Sprint has lately become a center if attraction for takeover missions. The company’s merger with SoftBank is just coming at a time when another company is said to be plotting a counterbid for Sprint. That company is Dish Network Corp. On its bid, Dish was offering $25.5 billion takeover for Sprint. But it now appears its fate is sealed as SoftBank and Sprint appear to have got to the point-of-no-return.
For the new executives to push forward SoftBank/Sprint business agenda after the merger, Silicon Valley is a more convenient place to work and think outside the box, lest the competitor catch up with you or overtake you.
The details about finalities in the merger are coming at a time when Sprint has just begun to slide into analysts’ good books. The company has lately been rated outperform with a price objective of $7.50 by analysts at Macquarie. The rating agency cites a lot of strengths in the company which it believes cannot be distracted by any visible weaknesses that the company might be harboring.
Sprint closed Friday’s trading down by 0.31% to settle at $6.40 by bell time. The company has $25.21 billion in market cap as at last week’s close.