Mobile and Sprint could reach merger agreement as soon as next week

Mobile and Sprint could reach merger agreement as soon as next week”

Sprint parent SoftBank (OTCPK:SFTBY) and T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) are looking at an agreement on how they'd exercise voting control together, Reuters says. This information comes from "people familiar with the matter", and was published by Reuters.

Remember a couple of weeks ago when we heard that T-Mobile and Sprint were in merger talks again? Those sources went on to caution that there's no guarantee that a deal will be reached. T-Mobile US parent company Deutsche Telekom wants control regardless of whether or not it has a majority stake in the combined company.

Assuming SoftBank and Deutsche Telekom agree on a deal, they'll still have to wait for USA authorities to approve the merger.

That being said, it's worth noting that the last round of talks between Deutsche Telekom and SoftBank broke down due to valuation disagreements, that was back in November previous year.

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Representatives for the carriers didn't immediately respond to requests for comment.

Updated 5:34 p.m.: T-Mobile is up 3.3% in postmarket trading; Sprint up 8%.

Reuters reports that the issue at hand is now not agreeing on voting control over a combined company.

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