Sprint may issue new shares as part of Softbank deal-source


NEW YORK, Oct 11 (Reuters) - Softbank Corp couldbuy a roughly 70 percent stake in Sprint Nextel Corpthrough a combination of newly issued shares and a tender offerfor existing shares, a source familiar with the situation saidon Thursday.

The possibility of issuing new shares, which would diluteexisting Sprint shareholders, is one of the options beingdiscussed, said the source, requesting anonymity because detailsof these talks are not public.

Softbank is expected to take a stake that is currentlyexpected to range between two-thirds to three-fourths of Sprint,the source said.

Although the talks are at an advanced stage, with anannouncement expected in the next several days, the finalstructure has not yet been decided and could change, the sourcecautioned.

Sprint and Softbank could not be immediately reached forcomment.

(Reporting by Martinne Geller and Soyoung Kim in New York,Editing by Paritosh Bansal; Editing by Gerald E. McCormick)

((soyoung.kim@thomsonreuters.com)(+1 646 223 6033))