US: Sprint readies to make T-Mobile bid

Sprint is ready to push for a buyout offer for fellow wireless operator T-Mobile having already met with banks to discuss debt arrangements for such an acquisition, sources say.

Unnamed sources have told reporters that Sprint Chief Financial Officer Joe Euteneuer and its Treasurer Greg Block held meetings with six banks to ensure they would be ready to finance the deal once it is made.

One source said Sprint is planning to make a formal offer for T-Mobile in June or July.

According to reports, any acquisition bid would need to include the $8.7 billion in debt currently held by T-Mobile.

The merger is being pursued by Sprint parent company SoftBank and its chief executive officer Masayoshi Son, but has caused heated debate among industry insiders. Any such deal, which would combine the nation’s number three and number four wireless carriers, would face intense regulatory scrutiny.

Son is already moving to convince both the Federal Communications Commission and the Department of Justice that the buyout will boost competition in the industry. According to three of the sources, Son hopes to strike with its merger plans while the FCC and DOJ are already reviewing Comcast’s proposed acquisition of Time Warner Cable in hopes authorities will view the deals as similarly impacting the nation’s telco industry.

Full content: Bloomberg

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