GO
Loading...

SoftBank gets closer to buying T-Mobile: report

Tuesday, 24 Dec 2013 | 8:57 PM ET

Japan-based SoftBank Corp is in final stages of talks with T-Mobile parent company Deutsche Telekom about acquiring the U.S.-based wireless carrier, the Nikkei news service reported on Tuesday, citing anonymous sources.

SoftBank, which purchased 80 percent of Sprint 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 is a favorite long position for Conatus.
Kiyoshi Ota - Getty Images
Softbank is a favorite long position for Conatus.

(Read more: Japan's Softbank cleared to buy Sprint Nextel)

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.

We've been about solving customer pain points: T-Mobile CEO
T-Mobile added unlimited international data and texting worldwide to "Simple Choice" customers at no extra cost. John Legere, T-Mobile CEO, weighs in on the new global plan.

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.

(Read more: SoftBank to pay $1bn for majority Brightstar stake)

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.

  Price   Change %Change
9984.T
---
TMUS
---
DTE
---
S
---

Featured

Contact Asia News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Asia Video