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SoftBank Reportedly Willing To Take Sprint Market Price

SoftBank Group Corp. (SFTBF.PK), the majority owner of Sprint Corp., is willing to accept a stock-for-stock merger with T-Mobile US that values Sprint at or near its current market price, Bloomberg reported citing people familiar with the matter.

Two sides haven't agreed on an exact value. SoftBank doesn't expect to receive much of a premium to Sprint's current share price and may accept a deal that values the fourth-ranked U.S. wireless carrier at about its $34 billion market capitalization, the report said.

Deutsche Telekom AG, the majority owner of third-largest U.S. wireless provider T-Mobile, previously told SoftBank it felt Sprint shares should be valued at a significant discount to their market value. In recent months, Deutsche Telekom has told SoftBank it's willing to come up on value for Sprint, the report said.

At current market values, a stock-for-stock merger would give SoftBank almost 33 percent of the combined company and Deutsche Telekom about 39 percent. Deutsche Telekom plans to consolidate the merged company's earnings by controlling the board of directors. Other governance arrangements haven't been finalized, the report noted.

by RTT Staff Writer

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