Thursday, December 26, 2013

Softbank nears acquisition of T-Mobile

According to Reuters SoftBank Corp is in the final stages of acquisition talk with T-Mobile parent company Deutsche Telekom. Earlier this year SoftBank already purchased 80 percent of Sprint and plans to pay for T-Mobile by using a portion of Sprint shares acquired in the merger. The deal is estimated to be worth more than $19 billion and SoftBanks goal is to have Sprint buy the majority of T-Mobile shares for control of the company. Nikkei news service says that SoftBank has thought of a stock swap but are also adding a tender offer and other kinds of deals as a backup plan. Sprint has been interested in combining their network wtih T-Mobile for years and both companies have said a consolidation is needed within the U.S. wireless market to create a stronger rival to Verizon and AT&T.