SoftBank gets closer to buying T-Mobile -report
Dec 24 (Reuters) - Japan-based SoftBank Corp is in final stages of talks with T-Mobile parent company Deutsche Telekom about acquiring the U.S.-based wireless carrier, the Nikkei news service reported on Tuesday, citing anonymous sources.
SoftBank, which purchased 80 percent of Sprint earlier this year, wants to pay for T-Mobile using shares of Sprint as early as next spring in a deal worth more than $19 billion, the report said. SoftBank aims to have Sprint buy the majority of T-Mobile shares.
SoftBank has thought about a stock swap but now may have added a tender offer and other kinds of deals to its list of options, Nikkei reported. Deutsche Telekom prefers a cash deal, the story said.
SoftBank is speaking to banks about borrowing funds for a deal, according to news reports.
Sprint has been interested in combining with T-Mobile for years and top executives from both companies have said that consolidation is needed in the U.S. wireless market to create a stronger rival against the biggest players, Verizon and AT&T.
A tie-up between Sprint and T-Mobile is expected to draw regulatory scrutiny, experts have said.
Shares of T-Mobile rose 21 cents or 0.7 percent to $32.06 per share.
- Alabama man gets $1,000 in police settlement, his lawyers get $459,000
- Probe: Athletes took fake classes at University of North Carolina
- Man arrested near Canada's prime minister in sign of tensions |
- Man arrested after jumping White House fence, causing lockdown
- U.S.-led air strikes killed 521 fighters, 32 civilians in Syria: monitor