Sprint, T-Mobile U.S. merger talks lead to price, termination fee accord

Nathan Andrada – Fourth Estate Cooperative Contributor

New York, NY, United States (4E) – Sprint Corp.’s planned acquisition of T-Mobile U.S. Inc. takes a step closer to being realized as both firms are nearing an agreement on the price, termination fee and capital structure. The deal could value T-Mobile U.S. at nearly $40 per share, according to people familiar with the matter.

Both companies are yet to finalize a formal contract, and the deal could still falter. But if completed, the combined entity will create a much larger wireless operator that will become a bigger competitor to industry leaders Verizon Communications Inc. and AT&T Inc.

Under the transaction, Sprint will present a mixed stock and cash offer for T-Mobile, leaving T-Mobil’s German parent Deutsche Telekom AG with nearly 15 percent stake in the combined firm, according to sources who requested not to be identified because the discussions are still private.

An agreement could be announced as early as July, sources say. At just under $40 per share, T-Mobile’s equity value would stand at $31bn.

A deal would still require regulatory approval from the Justice Department and Federal Communications Commission.

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