NEW YORK (TheStreet) -- Shares of Softbank
(SFTBF) are up 1.50% to $74.40 after it was reported that the company reached a basic agreement to acquire T-Mobile US
(TMUS - Get Report) from German parent Deutsche Telecom
(DTEGY), paving the way for a merger between the fourth-ranked U.S. mobile carrier and rival Sprint
(S), the Nikkei reports.
The two sides are still working out details, and the deal needs clearance from U.S. regulators.
Shares of T-Mobile US are 1.46% to $33.36.
Must Read: Warren Buffett's 25 Favorite Growth Stocks
Together, third-ranked Sprint, acquired by SoftBank last year, and T-Mobile have some 100 million U.S. subscribers, putting their combined customer base on par with those of Verizon Wireless
(VZ - Get Report)
(T - Get Report)
, the Nikkei said.
The Japanese carrier plans to buy more than 50% of T-Mobile shares through Sprint from Deutsche Telekom, which owns a roughly 67% interest. SoftBank will pay cash and use stock swaps to cover the estimated purchase cost of more than 1.7 trillion yen, or $16 billion, the Nikkei added.
data by YCharts
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts