Economy

SoftBank To Quit Sprint-T-Mobile Merger Negotiations

SoftBank To Quit Sprint-T-Mobile Merger Negotiations”

Japan's SoftBank Group Corp (TYO:9984) is reportedly planning to break off merger talks between subsidiary Sprint Corp (NYSE:S) and T-Mobile US Inc (NASDAQ:TMUS) due to a failure to agree on ownership of the combined company.

SoftBank will propose ending the talks as early as Tuesday, Nikkei said. Nikkei Asian Review is reporting that SoftBank, the Japanese telecom giant that owns Sprint, has chose to pull out of the deal "amid a failure to agree on ownership of the combined entity". The companies had been ironing out final terms of the merger in the hopes of announcing a deal in mid- to late November, people familiar with the matter told Bloomberg earlier this month.

SoftBank's board, which includes Sprint CEO Marcelo Claure, "discussed at a meeting Friday that the company would not give up control" in a merger, the report said.

Sprint shares dropped more than 8 percent, while T-Mobile stock dropped 3.6 percent after the report. Deutsche Telekom had 134 analyst reports since July 21, 2015 according to SRatingsIntel.

Sprint is half the size of T-Mobile, but SoftBank still thought it deserved a controlling stake.

An unconfirmed report Monday said Sprint's long awaited merger with rival T-Mobile is about to unravel. But no single-day change can erase the fact that T-Mobile is now valued at over $52 billion, more than double Sprint's $25.9 billion market cap. Under former President Barack Obama's administration, officials fended off a previous attempt by SoftBank to merge Sprint with T-Mobile. But SoftBank's board discussions were about not giving up control.



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