• It's the system

    The system sucks and it’s being used far too often as an excuse, says Mandi Smallhorne.

  • Web of dependency

    Zupta defenders are playing cat and mouse with ratings agencies, says Solly Moeng.

  • One-page marketing plan

    Every small business needs a simple but well-thought out marketing plan, says Ian Mann.

All data is delayed
See More

Secrecy cloaks US wireless market deal

Jun 09 2013 17:41
Tokyo - SoftBank has declined to comment about reports that it is in talks with DeutscheTelekom over a possible deal for T-Mobile US.

The Japanese company is looks for alternatives to enter the US wireless market if its $20.1bn deal with Sprint Nextel falls apart, sources say.

SoftBank and Deutsche Telekom were in talks last year about a deal for T-Mobile USA and have had periodic discussions since then, but those conversations have intensified in recent weeks after Dish Network Corp made a $25.5bn counterbid for Sprint.

Deutsche Telekom owns 74% of T-Mobile US and one possibility is for SoftBank to buy that stake if the Sprint deal doesn't happen, the sources say.

T-Mobile US has a market value of about $15bn.

T-Mobile's shares rose more than 3% after the news of Softbank's interest, while Sprint shares were off 0.5%.

Sprint, T-Mobile and Deutsche Telekom have not yet commented.

The news of SoftBank's talks comes ahead of a June 12 vote for Sprint shareholders to approve the Japanese company's bid for the No 3 US wireless carrier and could add pressure on investors as they decide how to vote.

The SoftBank deal is much farther along in the process than Dish's rival offer.

Softbank has cleared a key review by the agency that oversees foreign investments in the United States and is also getting closer to finishing the federal communications commission review.

If SoftBank decides to walk away from the Sprint deal, it would stand to make somewhere around $5bn from currency hedging gains, its previous purchase of Sprint shares and breakup fees, the sources said.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

softbank  |  us  |  japan  |  germany  |  mobile


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Comments have been closed for this article.

Company Snapshot

We're talking about:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Would you take out a payday loan?

Previous results · Suggest a vote