– Japanese telecommunications company SoftBank has decided to cease negotiations with the German Deutsche Telekom on the merger owned operators in the U.S. Sprint Corp. and T-Mobile US Inc., according to the publication Nikkei.
According to the publication, companies are unable to agree about who will be the owner of the combined company. Deutsche Telekom insisted that she should get the controlling stake of the joint venture, and at first it was satisfied with the leadership of Softbank, but then the Board of Directors decided not to give control to its prospective partner.
As previously reported by the sources, SoftBank and Deutsche Telekom had planned the merger of Sprint and E-Mobile in the form of an exchange of shares, the parties negotiated the final terms of the transaction.
The merger of Sprint and T-Mobile, occupying respectively the third and fourth largest operators in the United States, could be a company able to compete with current market leaders AT&T and Verizon Communications Inc. Rumors about their possible merger go the last few years.
Shares of Sprint in the course of trading on Monday has fallen in price on 9%, quotations of securities of T-Mobile decreased by 5%.