Just why Sprint needs T-Mobile US, widely speculated to be a takeover target, could become crystal clear after Q4 earnings are out. Japan’s SoftBank, which owns 80% of Sprint (S), reportedly is in talks with banks to raise cash to buy out Deutsche Telekom (DTEGY). The German phone company owns 67% of T-Mobile (TMUS). The deal would combine the Nos. 3 and 4 U.S. wireless carriers, to better battle leaders Verizon (VZ) and AT&T (T). T-Mobile
T-Mobile USA (TMUS) stock rose Thursday after reports in Japan that Sprint (S) majority owner SoftBank is raising funds to buy a majority stake in T-Mobile from Deutsche Telekom (DTEGY). Japanese banks are flush with cash and eager to fund acquisitions abroad. Loans from Japanese banks helped Japan-based SoftBank buy a controlling stake in Sprint this summer. The M&A environment is still ripe because of low interest rates across the globe.
A merger between Dish Network (DISH) and T-Mobile USA (TMUS) would easily win regulatory approval, unlike a Sprint (S) purchase of T-Mobile, says JP Morgan, which speculated in a research report Thursday that a Dish bid for T-Mobile could top $35 per share. T-Mobile stock popped on Thursday after Reuters reported that satellite TV broadcaster Dish Network could try to acquire Deutsche Telekom (DTEGY) -controlled T-Mobile USA in 2014. T-Mobile