Quick Note: Softbank to Take 70 Percent Stake in Sprint for $20B

Gadgets Quick Note: Softbank to Take 70 Percent Stake in Sprint for $20B
Brandon Hill (Blog) - October 14, 2012 6:32 PM

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Deal to be officially announced Monday morning

We reported last week that Softbank Corp. (TYO:9984) was in talks to acquire Sprint Nextel Corp. (S) for an estimated transaction price of $12.8 billion. There were no details given on the potential acquisition or the timeframe for its completion.
 
Sprint only provided the press with the following statement:
 

Sprint today confirmed that it is currently engaged in discussions with Softbank regarding a potential substantial investment by Softbank in 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. Sprint does not intend to comment further unless and until an agreement is reached.

 
Today, CNBC is starting to fill in a few more details, and reports that an official deal will be announced tomorrow. According to CNBC, Softbank will pay $20 billion for a 70 percent share of Sprint. This is well above the $12.8 billion figure that was tossed around last week.
 
The $20 billion figure includes:

• $8 billion in shares from Sprint ($5.25/share)
• $12 billion in from current Sprint shareholders ($7.30/share) 

We will bring your more complete details when the official deal is announced tomorrow morning.

Source: CNBC

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