Japanese telecommunications firm SoftBank confirmed Monday that it would buy 70% of Sprint Nextel for $20.1 billion. This acquisition makes it the largest international deal for a Japanese company. The newly created entity will be called "New Sprint" and become a publicly traded company.
Sprint Nextel (S) stock was up more than 2% in pre-market trading Monday morning. The stock has gained 14% since the proposed deal was first reported last Thursday. The $20.1 billion offer represents a 36% premium to the average share price of Sprint over the last two weeks. Sprint shareholders still need to approve the deal.
SoftBank will spend $8 billion to directly acquire Sprint stock and will buy an additional $12.1 billion of existing Sprint shares on the market. SoftBank's majority position in Sprint will allow it to enter the highly competitive wireless market where Sprint has lagged rivals Verizon (VZ) and AT&T (T). SoftBank founder and CEO Masayoshi SonRead More »from SoftBank of Japan Acquires Majority Stake in Sprint Nextel: Should Sprint Customers Be Concerned?