Following the news that SoftBank wants to back out of its T-Mobile-Sprint merger talks, a new report has detailed the final efforts to save the deal.
SoftBank is waiting to hear Deutsche Telekom’s final proposal to complete the T-Mobile-Sprint merger that they’ve been negotiating lately. The offer is expected this week, say sources speaking to Bloomberg, and will include how many Sprint shares it’ll accept for each T-Mobile share.
It’s rumored that SoftBank wants an exchange ratio of fewer than 8 Sprint shares per T-Mobile share. The current exchange ratio is more than 9.
Even if DT’s proposal is more appealing to SoftBank, the Sprint parent company may still not take the offer. It’s said that SoftBank CEO Masayoshi Son is reluctant to give up control of Sprint, and so SoftBank is working to keep him in a decision-making role for the combined T-Mobile-Sprint, possibly as a co-chairman.
In recent weeks, rumors said that the T-Mobile-Sprint merger was nearly complete and that the companies involved were ironing out the final details. That all changed this week, though, with reports suggesting that SoftBank wanted to end the merger talks because it didn’t want to give up control to DT. Now we’ll just have to wait and see if DT can come back with an offer that SoftBank deems satisfactory if if these merger talks ends up getting killed.