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Reuters Right Now: Sprint confirms talks with Softbank

Thursday, October 11, 2012 - 01:58

Oct 11 - Sprint has confirmed the talks with Japanese mobile carrier Softbank to buy a majority stake in U.S. operator for $12.8 billion, a deal that would give Softbank cheaper access to smartphones.

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Resources they're telling us that Softbank is in talks to buy majority shares Sprint Nextel four trillion yen and that creates terror and twelve point eight billion dollars. Sprint has actually con firm that it is in talks but it's not giving much details at this time. Analysts are saying that it could help sprint -- and if Softbank it. Buys a majority stake in the company because it might help its cost of capital. Right now sprint has a junk rating on the credit markets and Softbank has an investment grade rating. So it's -- wants them to raise money it can and made it more cheaply if it hasn't investment grade reading. And that there is the question though why why would Softbank wanna be in the US market that's not totally clear. Most people already have cell phones here so it's a pretty saturated market. And and big deal wouldn't appear to create any synergies are our help improve Sprint's customer numbers. Because Softbank doesn't have an outbreak here. There is some argument that there is. Room for growth in data revenue right now and because not all the cell phone users in the US are using data services today. -- speculation. Are these these talks are confirmed that this speculation comes at a time when there is. An expectation for more consolidation in the US market. Only last week the and number four provider Tino on USA and smaller rival MetroPCS. Agreed to marriage. And and it's also being told that and sprint was considering a counter bid form MetroPCS. Investors have seemed to like the an idea of -- Softbank investments sprint shares are up today and also and Clearwire. Is up Clearwire and sprint owns 48% of care aren't so would this would help them -- and much. Dire financial straits even then it's different.

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Reuters Right Now: Sprint confirms talks with Softbank

Thursday, October 11, 2012 - 01:58