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Softbank shares plunge on news of Sprint Nextel talks | Softbank shares plunge on news of Sprint Nextel talks |
(about 1 hour later) | |
Shares in the Japanese mobile phone company Softbank fell 16.9% in Tokyo after confirmation that it is in takeover talks with Sprint Nextel. | Shares in the Japanese mobile phone company Softbank fell 16.9% in Tokyo after confirmation that it is in takeover talks with Sprint Nextel. |
The potential deal to buy the number three US carrier would make Softbank one of the world's three biggest mobile phone operators. | The potential deal to buy the number three US carrier would make Softbank one of the world's three biggest mobile phone operators. |
Sprint shares closed 14.3% higher in the US. | Sprint shares closed 14.3% higher in the US. |
There are reports that Softbank could also be considering a bid for US mobile operator MetroPCS Communications. | There are reports that Softbank could also be considering a bid for US mobile operator MetroPCS Communications. |
The two acquisitions would cost Softbank more than 2tn yen ($25bn; £16bn), according to the Nikkei business daily. | The two acquisitions would cost Softbank more than 2tn yen ($25bn; £16bn), according to the Nikkei business daily. |
It is reported that Softbank is trying to buy as much as 70% of Sprint. | |
"Although there can be no assurances that these discussions will result in any transaction or on what terms any transaction may occur, such a transaction could involve a change of control of Sprint," the US operator said in a statement. | |
The combined deals would be the biggest overseas acquisition by a Japanese company, but Japanese investors were not enthusiastic. | |
"Investors were discouraged by the possibility that the company could be saddled with a heavy financial burden," said Kenji Shiomura, strategist at Daiwa Securities. | |
"Putting aside the point of whether the deal could be successful in the long run, the market is cautious." |