Actionable news
0
All posts from Actionable news
Actionable news in S: SPRINT CORPORATION,

Japan's SoftBank calling off talks to merge Sprint, T-Mobile: Nikkei

(Reuters) - Japan’s SoftBank Group Corp (9984.T) is planning to break off negotiations on a merger between subsidiary Sprint Corp (S.N) and T-Mobile US Inc (TMUS.O) due to a failure to agree on ownership of the combined company, Nikkei reported on Monday.

FILE PHOTO: The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan, July 20, 2017. REUTERS/Issei Kato/File photo

Sprint’s shares were down 9 percent at $6.36 and T-Mobile fell 4.3 pct to $60.35.

SoftBank is expected to approach T-Mobile owner Deutsche Telekom as early as Tuesday to propose ending the negotiations, the report said. (s.nikkei.com/2z03Bb0)

The due diligence between T-Mobile and Sprint was almost complete and the focus had shifted to working out a business plan for the combined company as well as an integration strategy, sources had told Reuters last week.

A merger between Sprint and T-Mobile would have created a company with more than 130 million U.S. subscribers, just behind Verizon Communications Inc (VZ.N) and AT&T Inc (T.N).

Deutsche Telekom had insisted on a controlling stake in the merged company and some at SoftBank were initially amenable as long as the Japanese company retained some influence, Nikkei reported.

But SoftBank’s board decided in a meeting Friday that the company would not give up control, the Japanese newspaper said.

SoftBank, Sprint and T-Mobile did not immediately respond to requests for comment.


More