SoftBank-Sprint deal support withdrawn by shareholder advisory firm

Shareholder-advisory firm Egan-Jones Ratings has reversed its position on the SoftBank-Sprint acquisition as Dish Network continues in hot pursuit.

According to Bloomberg, advisory firm Egan-Jones Ratings has reversed its position on the proposed acquisition of Sprint by Japanese carrier SoftBank for $20.1 billion. The firm said in a report this week that SoftBank is likely to improve its offer in relation to the rival deal offered by Dish Network.

As there is a high chance investors could profit from an improved offer by SoftBank to try and trump U.S. satellite provider Dish Network's most recent bid of $25.5 billion, investors may be best-advised to wait. Rival firm Dish said its offer was a 13 percent premium on the existing proposal SoftBank made last October.

The Pennsylvania-based firm said to investors that it would be "unwise at this time for the company’s shareholders to approve the merger agreement with SoftBank in its current form."

In comparison, tech giant Intel publicly supports the takeover plans, saying that the U.S. needs additional competition in the wireless market.

SoftBank has stated it will not increase the offer for Sprint any further, citing network experience and a defined future business plan as reasons its offer is better than that placed on the table by rival Dish Network. In contrast, Charlie Ergen, chairman of Dish Network, has labeled his firm's proposal as "a superior alternative."

Dish Network has also tried to take on Clearwire, recently offering $4.40 per share, which values the firm at $6.5 billion, a 29 percent premium on rival Sprint's proposal of $3.40 per share. Sprint owns 51 percent of Clearwire and is also attempting to secure the carrier's spectrum resources and subscribers.