Sprint eyes offer for T-Mobile: report

December 13, 2013 4:54 PM


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Number three US mobile carrier Sprint is considering a bid for rival T-Mobile which could shake up the wireless market, the Wall Street Journal reported (AFP Photo/Jamie Squire)

New York (AFP) - Number three US mobile carrier Sprint is considering a bid for rival T-Mobile which could shake up the wireless market, the Wall Street Journal reported Friday.

The report, citing unnamed sources familiar with the matter, said the deal could be worth more than $20 billion. But it also said the plan could be scuttled if it faces opposition from regulators.

Sprint in July closed a deal which allowed Japan's SoftBank to take a controlling stake for $21.6 billion, after a bidding war with Dish Network and special concessions made to alleviate national security concerns about a foreign-owned telecom operator.


A merger of Sprint and T-Mobile -- the fourth largest in the US -- would create a stronger number three player in the wireless sector, but would still be smaller than market leaders AT&T and Verizon, the newspaper noted.


T-Mobile, which is controlled by Germany's Deutsche Telekom, this year completed an acquisition of smaller carrier MetroPCS

Sprint did not immediately respond to a request for comment.

According to the Wall Street Journal, Sprint has not yet decided whether to move ahead with a bid. The report said the company may test antitrust officials' reaction to a deal, and that a bad reaction could put an end to the effort.


AT&T sought to buy T-Mobile for $39 billion in 2011
but backed down amid opposition from US regulators.


The SoftBank deal received clearance from US national security officials in May under the condition of appointing an independent member to the Sprint board of directors to serve as security director.


The director, who must be approved by US authorities, oversees national security matters and serves as a point of contact for US agencies.


The deal was the largest overseas acquisition ever by a Japanese firm.


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