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Sprint and T-Mobile agree to terms of merger

By David Gelles

New York Times

LAST UPDATED: 04:03 p.m. HST, Jun 04, 2014

Sprint and T-Mobile have settled on the terms of a $32 billion deal that would further reshape the telecommunications industry, according to a person briefed on the matter.

Both sides have agreed on a set of terms that would see Sprint, which is majority-owned by Japan's Softbank, acquire T-Mobile, creating a more formidable rival to the two largest wireless phone providers in the United States, Verizon and AT&T.

Sprint would pay about $40 a share in cash and stock for T-Mobile, about a 17 percent premium to Wednesday's price, according to the preliminary agreement.

After the deal, Deutsche Telekom, the majority owner of T-Mobile, would own about 20 percent of the merged entity. Deutsche Telekom currently owns about 67 percent of T-Mobile

The deal is sure to face regulatory scrutiny, and the early terms of the deal would include a breakup fee of more than $1 billion that Sprint would pay T-Mobile if the deal is not consummated.

An announcement is still a ways off. The two sides have not conducted due diligence on one another, drafted a definitive agreement or arranged financing. A deal could be announced in July, but could come as late as August.

Bloomberg and the Wall Street Journal earlier reported that the companies had agreed on deal terms.

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Ewaduffer wrote:
If you had Sprint stock before when they tried to merge with MCI, you'll be a little skeptical about the future of their stock after this deal gets shot down.
on June 4,2014 | 04:32PM
soundofreason wrote:
Sprint taking over T-mobile? Switching from T-Mobile then.
on June 4,2014 | 07:18PM
localguy wrote:
Sprint has a in the gutter service support rating. What was T-Mobile thinking in allowing Sprint to taint their name? Sprint low quality service spreads I'm dropping T-Mobile.
on June 4,2014 | 08:11PM
s_and_b wrote:
That's screwed cause I just switched from sprint to tmobile cause their nonexistent 4g sucks on the island and I don't want sprint folks slowing up the exist tmobile 4g network which is worlds better than sprint.
on June 4,2014 | 08:12PM
sloturle wrote:
i hope this brings change to end them listening on our phone calls
on June 5,2014 | 04:22AM
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