Monday, January 20, 2014

SoftBank and Deutsche Telekom in talks possible merger.

SoftBank CEO Masayoshi Son has begun active talks with Deutsche Telekom on how to acquire T-Mobile. According to sources cited by Bloomberg, the two companies are exploring the best way to structure such a deal.

Unresolved issues include how much cash and stock SoftBank will pay, as well as how best to integrate the two companies, and what sort of break-up fees might be assigned.

Deutsche Telekom wants all cash for the deal, but SoftBank wants to use both cash and stock.
T-Mobile's market value is about $26 billion and SoftBank already has assurances from a handful of banks that they'll finance the deal.