Published on 15th October 2012
The struggling cellphone service provider Sprint Nextel has agreed to sell 70 percent of itself to SoftBank of Japan for $20.1 billion, its boldest move yet to revive its fortunes. In a statement on Monday, SoftBank, a big Japanese telecommunications company, said it would pay $8 billion to buy newly issued Sprint stock worth about $5.25 a share. It will then pay $12.1 billion to buy existing stock from other investors at $7.30 a share, a premium to current levels. The deal remains subject to approval by regulators and Sprint’s shareholders, but has been approved by the boards of both companies, SoftBank said in the statement. The transaction is expected to close in the middle of 2013. [The New York Times]