Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Indexes  >  Japan  >  Nikkei 225    N225   JP9010C00002

NIKKEI 225 (N225)

SummaryQuotesChartsNewsAnalysisHeatmapComponents 
News SummaryAll newsNews of the componentsTweets 

Softbank Nearing Deal for Sprint, T-Mobile Merger

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/11/2014 | 08:09pm CEST

TOKYO -- SoftBank Corp. (>> Softbank Corp) has reached a basic agreement to acquire T-Mobile US Inc. (>> T-Mobile Us Inc) from German parent Deutsche Telecom AG (>> Deutsche Telekom AG), paving the way for a merger between the fourth-ranked U.S. mobile carrier and rival Sprint, The Nikkei reported in its Saturday morning editions.

The two sides are still ironing out the details, and the deal needs clearance from U.S. regulators. Together, third-ranked Sprint Corp. (S), acquired by SoftBank last year, and T-Mobile have some 100 million U.S. subscribers, putting their combined customer base on par with those of Verizon Wireless and AT&T.

The Japanese carrier plans to buy more than 50% of T-Mobile shares through Sprint from Deutsche Telekom, which owns a roughly 67% interest. SoftBank will pay cash and use stock swaps to cover the estimated purchase cost of more than Y1.7 trillion.

Eight financial institutions will bankroll the deal by setting credit lines of about Y4 trillion. In addition to Japan's three megabanks, such foreign financial institutions as J.P. Morgan Chase & Co. (>> JPMorgan Chase & Co.) and Deutsche Bank (>> Deutsche Bank AG (USA)) will take part. To keep interest rates low, the SoftBank group is expected to first procure the funds through bridge loans, which will then be replaced with Sprint-issued corporate bonds and other long-term borrowing.

SoftBank had more than Y9 trillion in interest-bearing debt as of March 31. But the banks apparently have confidence in the telecommunication company's ability to repay loans, given its solid domestic wireless business.

The U.S. Federal Communications Commission and the Department of Justice need to approve the deal, a process expected to take a year or two. Deutsche Telekom is concerned that T-Mobile's competitiveness will suffer if capital investment is put off during the screening period and the deal is not approved. It is asking SoftBank to compensate for the loss if this happens. The two sides apparently have not finalized several other conditions as well.

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on NIKKEI 225
04/21DJMARKET SNAPSHOT : Stock Market Closes Lower, But Trims Losses As Trump Pledges T..
04/21DJMARKET SNAPSHOT : Stock Market Pares Losses As Trump Pledges 'massive' Tax-cut P..
04/21DJMARKET SNAPSHOT : Stock Market Edges Lower As Traders Await French Election
04/21DJMARKET SNAPSHOT : Stock Market Edges Lower As Traders Await French Election
04/21DJMARKET SNAPSHOT : Stock Market Set To Open Higher, On Track For Weekly Gain
04/21DJMARKET SNAPSHOT : Stock Market Set For Small Opening Gains On Revived Tax-cut Ho..
04/21DJMARKET SNAPSHOT : U.S. Stocks Set For Small Opening Gains As French Election Fea..
04/21DJFinancial, Industrial Sectors Boost Stocks -- WSJ
04/21DJASIA MARKETS : Led By Nikkei, Asian Markets Build On Overnight Gains
04/21DJAsian Shares Rise Ahead of French Presidential Election
More news
News of the components of NIKKEI 225
03:04p NISSAN MOTOR : Vehicle flees after near-collision with motorcyclist on Highway 4..
01:53p SONY : to launch high-speed, silent mirrorless camera
12:33p TOYOTA MOTOR : celebrates double win at Middle East Car of the Year awards
10:14a HONDA MOTOR : Organisational patriotism devotion to your firm counts
09:49a HONDA MOTOR : BC-CAR--INDY GP of Alabama Lineup BC-CAR--INDY GP of Alabama Lineu..
09:43a HONDA MOTOR : Bianchi Motors Inc
12:49a HONDA MOTOR : Woman in critical condition after vehicle crashes in to house
More news
Advertisement
Chart NIKKEI 225
Duration : Period :
Nikkei 225 Technical Analysis Chart | N225 | JP9010C00002 | 4-Traders
Full-screen chart
Technical analysis trends NIKKEI 225
Short TermMid-TermLong Term
TrendsBearishBullishNeutral
Technical analysis
Top / Flop NIKKEI 225
TAIHEIYO CEMENT CORP 370 End-of-day quote.4.52%
NIPPON SHEET GLASS COMPANY,.. 805 End-of-day quote.4.27%
TOKYO ELECTRON LTD 12300 End-of-day quote.4.10%
SUMCO CORP 1905 End-of-day quote.4.04%
ASAHI GLASS CO LTD 916 End-of-day quote.3.97%
UNITIKA LTD 89 End-of-day quote.-2.20%
RAKUTEN INC 1145 End-of-day quote.-2.39%
YASKAWA ELECTRIC CORP 2003 End-of-day quote.-2.91%
FUJIFILM HOLDINGS CORP 3987 End-of-day quote.-4.04%
TOSHIBA CORP 207.3 End-of-day quote.-5.73%
More Top / Flop
Heatmap :
Detailed heatmap