updated 05:15 am EDT, Mon October 15, 2012
Japanese carrier to pay $20 billion for Sprint share
(Updated) Japanese carrier Softbank has confirmed it is buying a 70 percent stake of US carrier Sprint for $20 billion. A joint press conference between the two carriers saw Sprint CEO Dan Hesse and Softbank's Masayoshi Son confirm the purchase. Observers expect Softbank to attempt to turn its successes in the Japanese 4G LTE market into matching successes on US shores.
CNBC reports that Softbank will be buying $8 billion worth of Sprint shares directly from Sprint and tendering for another $12 billion worth of shares from existing holders. The company is currently offering $5.25 per share, a premium over Sprint's current price.
Softbank is said to be hoping to build on Sprint's spectrum position, with the goal of acquiring more spectrum and other operators as time goes on. The deal, as it is currently structured, does not require a stockholder vote, and it is expected to be completed in about six months.