December 24, 2013 / 6:20 PM / 4 years ago

SoftBank gets closer to buying T-Mobile: report

(Reuters) - Japan-based SoftBank Corp (9984.T) is in final stages of talks with T-Mobile TMUS.Nparent company Deutsche Telekom (DTEGn.DE)about acquiring the U.S.-based wireless carrier, the Nikkei news service reported on Tuesday, citing anonymous sources.

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

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

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below