Wednesday, January 30, 2013

Sprint Softbank approval delayed by DOJ, concerned with National Security

Last year Softbank announced they’d be purchasing 70 percent of Sprint’s stock for $20.1 billion. Softbank is based in Japan and they planned to build a U.S. subsidiary called “New Sprint”, which would invest $3.1 billion in a convertible bond with a 7 year term and 1.0% coupon rate. The Justice department has contacted the FCC requesting more time so they can review the planned deal. They have a concern about national security and knowing they’ll own 70% of the nation's third biggest wireless carrier raises potential risks. According to Broadband reports Sprint says "This is a routine request when working with the CFIUS agencies regarding national security," and "We continue to anticipate that the transaction will be completed in mid-2013."