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

October 11, 2012 7:01 AM EDT Send to a Friend
(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.


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