NEW YORK (TheStreet) -- Sprint Nextel (S) shares are up 2.9% to $9.47 on Thursday following reports that the telecom company's parent company, Softbank Corp (SFTBY), had come to terms on an agreement to buy T-Mobile (TMUS - Get Report) from Deutsche Telekom AG (DTEGY).
Deutsche Telekom has declined to comment on the reports so far, but Japanese news agency Kyodo is reporting that Deutsche Telekom accepted a bid from Softbank for its controlling share of T-Mobile, citing industry sources.
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Sprint and T-Mobile are the third and fourth largest mobile carriers in the United States and thus would need to clear FCC regulatory hurdles before any deal could be consummated.
T-Mobile shares are also up 2.1% in trading today.