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SoftBank reaches deal on T-Mobile takeover - report

2014-07-14 09:21:00| Telecompaper Headlines

(Telecompaper) SoftBank has reached a basic agreement to acquire T-Mobile US from Deutsche Telekom, the Nikkei reported. The two sides are still ironing out the details, and the deal would need clearance from US regulators. The Japanese carrier plans to buy more than 50 percent of T-Mobile shares through Sprint from Deutsche Telekom, which owns a roughly 67 percent interest. SoftBank will pay cash and use stock swaps to cover the estimated purchase cost of more than USD 16 billion, the report said. Eight financial institutions will bankroll the deal with credit lines of about JPY 4 trillion. Deutsche Telekom is reportedly concerned that T-Mobile's competitiveness will suffer if capital investment is put off during the regulatory approval process or if the deal is not approved. It is asking SoftBank to compensate if this happens. The two sides apparently have not finalized several other conditions as well, the Nikkei said. 

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