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Softbank Talking to Banks to Raise Funds for Sprint Nextel Takeover

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Japan's three biggest banks are reported to have started talks with Softbank in order to discuss financing its possible 1.5 trillion (USD19 billion) takeover bid for USA based Sprint Nextel.

Citing banking sources, the Japan Times said that Softbank is also looking at the possibility of a smaller bid for WiMAX to LTE network, Clearwire, which is also majority owned by Sprint Nextel.

Mizuho Corporate Bank, Bank of Tokyo-Mitsubishi UFJ and Sumitomo Mitsui Banking Corp. intend to support Softbank's apparent attempt to expand overseas on the back of the strong yen, sources told the newspaper.

The expectation is that the banks would secure funding for a one-year loan, which would be rolled over into long term debt once the transaction is completed.

Sprint has a stock market capitalisation of around USD15 billion compared to the USD40 billion that Softbank Corp is worth. Softbank is also in the middle of a USD1.84 billion acquisition of smaller local mobile network, eAccess.

On the web: Japan Times

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Tags: softbank  sprint nextel  Japan  USA