The telecom sector which sawquite a few deals throughout the year,has closed out the last full week of the year on the same note. Sprint Corp. which is owned by SoftBank of Japan is reportedly preparing for a bid on T-Mobile US in a deal that is being valued at around $20 billion. The offer, which according to reports could come as early as the spring of 2014, would be welcomed by T-Mobile’s parent company Deutsche Telekom AG, which has already shown interest in unloading its US wireless assets.
The deal if approved by the Department of Justice would make SoftBank the second largest telecom service provider in the world in terms of wireless revenues, after China Mobile (CHL). SoftBank Chief Executive Masayoshi Son however faces huge hurdles in getting the deal approved by US regulators who in the past have indicated a preference for an industry with four major carriers. A prior attempt by AT&T Inc. (T) has already been rejected by the antitrust regulators on the back of concerns regarding consumer choice.
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