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Discussions between telecom giants T-Mobile (TMUS) and Sprint (S) regarding a stock-for-stock deal are moving forward, CNBC reports.

The deal would establish Deutsche Telecom, the parent of T-Mobile, as the controlling owner of the combined entity. 

Shares of T-Mobile were climbing higher, while shares of Sprint were moving nearly 2% lower following the report.

The exchange ratio for the stocks is projected to be at the market, but T-Mobile shareholders are said to be upset with the deal price, the report added. The exchange also provides no premium above Sprint's current value.

Sprint is controlled by Japanese telecom giant SoftBank (SFTBF) , owned by billionaire Masayoshi Son.

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