SoftBank gets closer to buying T-Mobile: report

Tue Dec 24, 2013 1:19pm EST

Softbank Corp President Masayoshi Son speaks during a news conference in Tokyo July 30, 2013. REUTERS/Issei Kato

Softbank Corp President Masayoshi Son speaks during a news conference in Tokyo July 30, 2013.

Credit: Reuters/Issei Kato

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(Reuters) - Japan-based SoftBank Corp (9984.T) is in final stages of talks with T-Mobile (TMUS.N)parent company Deutsche Telekom (DTEGn.DE)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 (S.N) 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.

(Reporting by Liana B. Baker; Editing by David Gregorio)

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Comments (7)
bigturkey wrote:
“Sprint has been interested in combining with T-Mobile for years” CDMA and GSM? How does this make sense?

Dec 24, 2013 2:24pm EST  --  Report as abuse
sophie125 wrote:
NASA astronauts make rare Christmas Eve spacewalk

Dec 24, 2013 2:57pm EST  --  Report as abuse
Wil06 wrote:
Seriously this would ONLY benefit AT&T/Verizon more and consumers would be hurt by this potential deal!

Right now this is what we have:

•2 big companies screwing consumers
•1 company floundering
•1 company putting pressure on the big guys to change (and beginning to succeed in doing so)

We would potentially move to:
•2 big companies screwing consumers
•1 big(-ish) company either floundering or screwing consumers

I’m sure AT&T/Verizon would LOVE for this deal to go through. FCC and DOJ will eventually block such a deal, they know it’s bad for consumers. DT seriously needs to stop trying to merge with it’s competitors and try to sell the company to a new entrant if he really wants to exit the U.S market so badly!

Dec 24, 2013 11:26pm EST  --  Report as abuse
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