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SoftBank Group Corp. (SFTBF) has reportedly called off negotiations to merge its subsidiary Sprint Corp. (S) - Get Free Report with T-Mobile U.S. (TMUS) - Get Free Report , according to a report in the Nikkei Asian Review.

Failure to agree on ownership of the combined entity forced SoftBank to halt deal talks. The Japanese technology giant had hoped a merger would refocus Sprint in the American wireless carrier business.

According to the Nikkei, SoftBank is expected to approach T-Mobile owner Deutsche Telekom as early as Tuesday, Oct. 31, to officially propose calling off the deal. The two firms had previously reached a deal that would have combined the third- and fourth-largest U.S. carriers, but were still discussing ownership ratio details.

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Deutsche Telekom had insisted on a controlling stake, an insider told the Nikkei, while some at SoftBank were open to such an agreement so long as the company reserved some influence. At a SoftBank board meeting Friday, leaders confirmed they were unwilling to cede total control.

CNBC reported that SoftBank was not planning to withdraw from deal talks, but that governance issues and pricing concerns were causing trouble in negotiations between Sprint and T-Mobile.

Shares of Sprint were halted on a volatility trading curb before falling 9.10% to $6.34 in late afternoon trading. T-Mobile shares were lower 5.47% to $59.51.

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