Sprint plans to promote T-Mobile acquisition in the United States

SAN FRANCISCO, May 1 morning news, Bloomberg quoted sources as saying that the third largest US mobile operator Sprint is planning to promote the fourth largest mobile operator T-Mobile USA acquisition. Last month, Sprint contacted the bank to make a debt purchase to complete the acquisition.

According to sources, Sprint CFO Joe Euteneuer and Treasurer Greg Block negotiated with six banks to ensure that when Sprint proposed the acquisition, the bank could provide the appropriate Financing program.

Softbank currently holds about 80% of Sprint shares. Sources estimate Softbank CEO Son Masayoshi will formally offer in June or July. As regulators may question the deal, Son and his financial advisers are looking into ways to convince the FCC and the Justice Department that the deal will benefit the long-term growth of the U.S. mobile communications industry.

Iwai Cosmo Holdings Tokyo based analyst Kawasaki Youming said: "Son Masayoshi did not give up .. The acquisition of T-Mobile will strengthen the competitiveness of Sprint in the United States to help the company to expand the scale and reduce costs."

T-Mobile shares soared 11% in after-hours trading in the U.S. stock market on Friday. The company closed Friday at 29.29 U.S. dollars with a market capitalization of nearly 24 billion U.S. dollars. Sprint rose 6% in after-hours trading in the U.S. stock market on Friday.

According to sources, the talks between Sprint and the bank focused on what size Sprint needed to borrow. If the acquisition is completed, then Sprint also bear T-Mobile's net debt of 8.7 billion US dollars. Currently, Sprint has not signed any financing commitment agreement, and Son Masayoshi is still studying how to raise funds for the deal.

Deutsche Telekom holds about 67% of T-Mobile's shares. Sources said Softbank is still negotiating with Deutsche Telekom to determine who will ultimately lead T-Mobile. T-Mobile CEO John Legere is currently the most powerful candidate. Deutsche Telekom hopes to get as much cash as possible in the deal.

Sources said the U.S. Department of Justice and the FCC are also currently evaluating Comcast's acquisition of Time Warner wire deals, both of which are considered Change the U.S. telecom industry. In 2011, regulators rejected AT & T's acquisition of T-Mobile. However, Masayoshi Son's team believed that AT & T was not prepared at the time and therefore failed to convince regulators such acquisitions in the public interest. Sprint currently plans to provide regulatory authorities with detailed instructions.

Spokesman also wants to avoid a high deal of termination damages in the terms of the deal, which could push regulators to veto the deal, a source said. After previous deals failed, AT & T paid T-Mobile $ 6 billion worth of cash and spectrum resources. Son Masayoshi believes that this is a strategic mistake, resulting in T-Mobile eventually become a stronger competitor.

Sources disclosed that Sprint met with banks including Goldman Sachs, Citigroup, JP Morgan Chase & Co., Mizuho Securities, Bank of America (15.14, -0.10, -0.66%), And Deutsche Bank.

If Sprint makes the deal, the deal needs to be approved by SoftBank, Deutsche Telekom, Sprint and T-Mobile's board of directors. This will be a long process. (Peacekeeping gold)