Tags: Sprint | Accord | T-Mobile | Deal

Sprint Near Accord on Terms for T-Mobile Deal

Wednesday, 04 Jun 2014 07:57 PM

Sprint Corp. is nearing an agreement on the price, capital structure and termination fee of an acquisition for T-Mobile US Inc. that could value the wireless carrier at almost $40 a share, people with knowledge of the matter said.

Sprint will offer about 50 percent stock and 50 percent cash for T-Mobile, leaving parent Deutsche Telekom AG with about a 15 percent stake in the combined company, according to the people, who asked not to be identified because the process is private. The agreement could be announced as soon as July, the people said.

Deutsche Telekom, which owns about 67 percent of T-Mobile, was seeking at least $40 a share, two of the people said. SoftBank Corp., which owns 80 percent of Sprint, is willing to pay in the upper $30s, and the two sides have bridged the gap, the people said. They companies haven’t set an announcement date and there’s still a lot of work to be done before a deal is completed, including deciding management of the new company, the people said.

At $39 a share, T-Mobile’s equity value would be about $31.3 billion. The company has about $14.5 billion of debt and $5.5 billion of cash, giving T-Mobile a theoretical enterprise value of $40.8 billion.

T-Mobile shares rose as much as 6.5 percent in late trading, while Sprint gained as much as 4.8 percent.

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Sprint Corp. is nearing an agreement on the price, capital structure and termination fee of an acquisition for T-Mobile US Inc. that could value the wireless carrier at almost $40 a share, people with knowledge of the matter told Bloomberg.
Sprint, Accord, T-Mobile, Deal
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2014-57-04
Wednesday, 04 Jun 2014 07:57 PM
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