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
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