Sprint reportedly gearing up for a T-Mobile buyout attempt

Sources familiar with the matter claim that Sprint has approached sources of funding for a T-Mobile buy previously rumored in December. Sprint executives Joe Euteneuer and Greg Block met with a half dozen banks to prepare financing agreements before Sprint signals that it is ready to entertain offers. An offer for the US telecom provider is expected during the early summer. Sprint has been formulating a position to convince the FCC and the DoJ that the merger would not harm the US wireless industry. 

Sprint Corp. (S) plans to push forward with a bid for T-Mobile US Inc. (TMUS) after meeting with banks last month to make debt arrangements for that offer, people with knowledge of the situation said. 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, said three of the people, asking not to named because the discussions are private. Masayoshi Son, chief executive officer of SoftBank Corp. (9984), which owns about 80 percent of Sprint, is expected to make a formal bid in June or July, one of the people said. 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 theDepartment of Justice about the long-term health of the U.S. wireless industry.

Read full article

Comments

Comments »

No comments yet.

Name (required)

E-mail (required - never shown publicly)

Web-site

Your Comment