A group of potential buyers are preparing bids for prepaid wireless brand Boost Mobile in an upcoming sale that values the offshoot of U.S. wireless carriers T-Mobile US (TMUS) and Sprint (S) at up to $3 billion.
Citing sources connected to buyers exploring the potential deal, Reuters reported on Wednesday that interested parties are already preparing bids for Boost Mobile following the U.S. Federal Communications Commission's approval of T-Mobile's and Sprint's merger.
The commission agreed to the tie-up with concessions, including the sale of Boost Mobile to reduce the combined company's market share in the prepaid wireless business.
While the deal awaits a ruling from the U.S. Department of Justice, interested parties are already preparing bids, Reuters said. The sale process is expected to begin after the Justice Department's review.
Q Link Wireless, a prepaid brand and the third-largest provider of federally assisted wireless plans, is putting together a package to bid for Boost with private-quity backing and could pay between $1.8 billion to $3 billion, CEO Issa Asad told Reuters.
Shares of T-Mobile were little changed at $75.77 on Wednesday. Shares of Sprint were down $1.37% to $6.82 after ending the day Tuesday down 3.49% at $6.91.