Sprint Merger with T-Mobile Inches Closer in the USA

Published on:

A merger between the USA based mobile networks, Sprint and T Mobile USA has reportedly moved much closer following a deal between the two company's major shareholders.

Germany's Deutsche Telekom is reported to have agreed to sell its 67% stake in T-Mobile USA to Softbank, which owns a majority stake in Sprint.

A buyout proposal was made by Softbank chairman Masayoshi Son in a meeting with Deutsche Telekom a couple of weeks ago, Reuters reported on Thursday, citing Japan's Kyodo.

Deutsche Telekom was said to have been positive about such a transaction.

Speculation that a deal was imminent has been mounting all year, and was fueled by Deutsche Telekom's decision to shift the holding company that owns its T-Mobile stake from Germany to the Netherlands. Such a move would reduce the tax bill if a sale takes place.

SoftBank's CEO Masayoshi Son was also recently reported to have held talks with at least five banks to finance a possible bid.

He is said to be looking to raise around USD20 billion for the takeover bid.

However, such a deal would face an enormous regulatory barrier, and is likely to be difficult to consummate without considerable concessions to the US regulators.

Page Tools

 

Tags: t-mobile usa  sprint  softbank  deutsche telekom  USA 

Sign up for our free daily email news alerts

Sample Copy