Sprint and T-Mobile merger in question as SoftBank reportedly defends ownership
Shares of T-Mobile US fell more than 5 percent today while Sprint stock tumbled more than 9 percent on news that a merger between the two companies in the works for 6 months may be called off.
It is reported that Sprint’s parent SoftBank is vying for semblance of control over the resulting entity. T-Mobile owner Deutsche Telekom is said to want full control of the company. Previously, it was expected that Deutsche and SoftBank would split the stakes 60/40 and that both companies’ head executives would co-chair the entity.
Sources to Reuters say that some of SoftBank’s C-suite are trying to convince chairman Masayoshi Son to rethink the deal as he would essentially lose control of one of the company’s largest assets, much less a foreign asset. CNBC’s sources contest that negotiations between the two are still active and Sprint has not definitively set an end to its participation. This is contrast to Nikkei‘s reporting.