Deutsche Telekom, SoftBank Strikes Wall in Sprint: T-Mobile Talks
- Author: Latoya Cobb Nov 01, 2017,
Nov 01, 2017, 0:11
T-Mobile may need a little self-confidence boost, because it looks like Sprint is leaving it at the altar.
Meanwhile, several members of SoftBank's board have raised concerns about giving up control of the U.S. wireless business, another person said.
As reported by Nikkei, citing a source familiar with the situation, Deutsche Telekom - which owns a 66 per cent majority of T-Mobile US - had insisted on owning a controlling stake in the merged company.
Shares in the provider of satellite television Dish Network Corp that had hugely been considered an active partner for the Sprint or T-mobile of its spectrum holdings, shut down at 4 percent. Bloomberg reported that deal talks have "hit a serious snag". While merger talks have been underway for months, the board members raised their concerns in the last few days because it's now a make-or-break moment, with the sides very close to a deal, the person said, asking not to be identified discussing private deliberations. T-Mobile shares dropped 5.4 percent.
This actually isn't the first time that a merger between the two carries has failed.
Deutsche Telekom and T-Mobile declined to comment. Under former President Barack Obama's administration, officials fended off a previous attempt by SoftBank to merge Sprint with T-Mobile.
Deutsche Telekom, based on Bonn, Germany, has maintained throughout the talks this year with SoftBank that it should maintain control of the combined company.