April 30 Sprint Corp is planning to move ahead on a bid for smaller rival T-Mobile US Inc after meeting banks in April, Bloomberg reported, quoting people with knowledge of the situation.
Masayoshi Son, the billionaire Chief Executive Officer of Japan's SoftBank Corp, Sprint's parent company, is expected to make a formal offer in June or July, Bloomberg quoted a source as saying.
Sprint Chief Financial Officer Joe Euteneuer and Treasurer Greg Block met with six banks to make sure the lenders would be ready with financing when the No. 3 U.S. mobile provider decides to make an offer, Bloomberg said, quoting three unidentified people.
T-Mobile has a market cap of $23.52 billion, according to Thomson Reuters data.
The discussions with the banks, which included Goldman Sachs , Citigroup, Bank of America and JPMorgan , were mainly on how much Sprint should borrow for the deal, Bloomberg said. (link.reuters.com/ruc98v)
Meanwhile, SoftBank is still trying to settle with Deutsche Telekom, which owns 67 percent of T-Mobile, as to who would run the company, Bloomberg quoted the sources as saying. T-Mobile Chief Executive John Legere leads the list of possibilities, Bloomberg said.
Sprint and T-Mobile could not be immediately reached for comment outside of regular U.S. business hours.
Sprint has attempted to convince skeptical U.S. regulators that consolidation in the industry would allow for greater competition against the two top players, Verizon Communications Inc and AT&T Inc.
Sprint, which is working to present a detailed case to put in front of regulators, also wants to avoid agreeing to a high termination fee because it provides regulators with an incentive to reject the deal, Bloomberg said. (Reporting by Sampad Patnaik in Bangalore; Editing by Bernard Orr)