Would you characterize this as a reverse or forward merger? Based on your answer why was this type of reorganization selected by SoftBank? Will this takeover require a vote by Softbank shareholders?

Question

Quizplus · Accepted Answer

The Answer is This is a reverse merger in which the merger sub is merged into Sprint-Nextel with Sprint surviving. The purpose of this reorganization is to avoid requiring a SoftBank shareholder approval, to keep Sprint intact to allow its vendor and customer contracts to transfer to SoftBank unless consent to assignment is stipulated in the contract. The portion of the form of payment consisting of New Sprint stock for Sprint-Nextel stock is tax free to Sprint - Nextel shareholders.

Would You Characterize This as a Reverse or Forward Merger