Japan’s Softbank in Takeover Talks with Sprint Nextel
Japanese mobile network, Softbank Corp is in talks to buy a majority stake in the USA based Sprint Nextel.
Sprint Nextel has now confirmed that talks are underway between the two companies which would see a substantial investment by Softbank in Sprint, which would include a change in control of the ownership of the company.
Sprint Nextel is itself said to be mulling a spoiler takeover bid for its smaller rival MetroPCS, which has just agreed a merger with T-Mobile USA.
Sprint has a stock market capitalization of around US$15 billion compared to the US$40 billion that Softbank Corp is worth. Softbank is also in the middle of a US$1.84 billion acquisition of smaller local mobile network, eAccess.
Softbank is looking to buy two-thirds of the US mobile network. Softbank has grown its mobile businesses through acquisitions, starting with the 2006 deal to buy what was then called Vodafone Japan.