Japan’s SoftBank Corp is set to acquire U.S. wireless carrier T-Mobile US Inc and is now talking with financial institutions for funding as revealed by an insider last Wednesday. SoftBank, who recently acquired U.S. unit Sprint Corp, is keen on having a majority stake in T-Mobile via its parent company Deutsche Telekom AG starting April next year.
The deal would push the Tokyo-based company as the world’s second top mobile carrier in terms of revenue, past its U.S. rivals Verizon and AT&T. Media is speculating that the deal would be at around $20 billion, around the $21.6 billion mark SoftBank paid for Sprint last summer and would bring SoftBank CEO Masayoshi Son one step closer to his desire of creating the world’s largest mobile Internet company.
Current competition is also a concern with the U.S. Federal Communications Commission and the Justice Department chiefs are setting a hardline for consolidation bids. Dish Network Corp has also signified its interest in T-Mobile and is expected to be more aggressive after giving way to SoftBank’s acquisition of Sprint. Son has already met with five banks to discuss financing including Credit Suisse Group AG, Mizuho Bank Ltd., Goldman Sachs Group Inc and Deutsche Bank AG but while Nikkei business daily said that the company is already on its final stages of talking with Deutsche Telekom, Reuters countered that it is still in the preliminary stages.
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