Quantcast

Saturday, October 25, 2014         

 Print   Email   Comment | View 5 Comments   Most Popular   Save   Post   Retweet

Sprint and T-Mobile agree to terms of merger

By David Gelles

New York Times

POSTED:
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.






 Print   Email   Comment | View 5 Comments   Most Popular   Save   Post   Retweet

COMMENTS
(5)
You must be subscribed to participate in discussions


IN OTHER NEWS
Breaking News