Sprint-T-Mobile US Merger Could Be Announced This Summer
May 1, 2014
Sprint may finally announce plans to buy T-Mobile US in June or July. This follows meetings between Sprint and banks last month to make debt arrangements for that offer, according to Bloomberg.
The report notes Sprint Chief Financial Officer Joe Euteneuer and Treasurer Greg Block met with six banks to ensure the lenders would be ready with financing structures when Sprint decides to pursue a takeover. T-Mobile US has a market value of $23.5 billion.
SoftBank Corp. CEO Masayoshi Son has a 80 percent take in Sprint, which is the third-largest carrier in the U.S. No. 4 T-Mobile is owned by Deutsche Telekom AG.
T-Mobile CEO John Legere is the leading candidate to run the combined company.
In December, The Wall Street Journal said Sprint was studying regulatory concerns before making a formal bid for T-Mobile.
According to Bloomberg:
While regulators have consistently expressed concerns about a combination of the third- and fourth-largest wireless carriers in the U.S., Son and his advisers are building an argument they hope will convince the Federal Communications Commission and the Department of Justice about the long-term health of the U.S. wireless industry.Two months ago, Son called current Internet service in the U.S. “way too slow and way too costly.” He believes things would improve if the Obama administration would allow Sprint to purchase T-Mobile. See also: Sprint Customers Will Receive Up To Six Months Of Spotify Premium For Free, Sprint To Make All Mobile Devices Unlockable Beginning Next Year, and T-Mobile To End Domestic Data Overages And Hopes Other US Carriers Will Do The Same.
