UPDATE: Sprint (S) Surges on Reports of Softbank Bid

October 11, 2012 7:01 AM EDT
(Updated - October 11, 2012 8:29 AM EDT)

Shares of Sprint (NYSE: S) are surging in pre-open trading Thursday following reports in Japan that Softbank Corp is in talks to buy more than two-thirds of Sprint for more than 1.5 trillion yen, or $19 billion.

The Wall Street Journal is calling the talks "advanced" and a deal north of $6 per share is seen.

According to CNBCs' David Faber, Softbank tried to get involved with a potential Sprint/T-Mobile merger although T-Mobile parent Deutsche Telekom decided not to proceed with that deal on antitrust concerns. Instead, the German's turned their attention to MetroPCS (NYSE: PCS). Softbank is still very interested in spectrum and decided to pursue Sprint alone.

A Sprint/Softbank deal could also involve buying Sprint's wireless partner Clearwire (NASDAQ: CLWR)

Softbank said it is 'checking facts' on the Nikkei's Sprint report and Sprint declined to comment on the report.

Shares of Sprint are up 19 percent to $6.03. Clearwire is up 25 percent.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Hot List, Momentum Movers, Rumors, Trader Talk

Related Entities

David Faber

Add Your Comment