Mobile, Sprint merger talks reportedly back on

Sprint Corp surges on reports of T Mobile merger talk

USA wireless carriers T-Mobile US Inc. and Sprint Corp. are said to be in active merger talks, CNBC reported on Tuesday, citing sources. Shares of T-Mobile were up more than 3%, and shares of other mobile carriers also saw a bump, with Verizon Communication Inc. shares up almost 3% and AT&T Inc. shares up close to 2%. On the flip side Sprint chairman and SoftBank CEO, Masayoshi Son wants a say in how the combined company would be run.

Both firms and their parents, Deutsche Telecom and Softbank, have been in talks before about a stock-for-stock merger, which would enjoy considerable cost synergies.

Sprint's shares rose 6.8 percent, while T-Mobile's shares were up almost 4.6 percent in morning trade.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Reuters reported in June that the carrier was in talks with cable companies Charter Communications and Comcast about a possible partnership, but the those were put on hold when SoftBank entered into exclusive negotiations with Charter and Comcast.

CNBC reported that the pair have begun active discussions.

Reuters reported in February that SoftBank was prepared to give up control of Sprint to T-Mobile to clinch a merger of the two USA wireless carriers.

The two sides have not yet set an exchange ratio for a deal, but are now engaged in talks to hammer out a term sheet.

Since then, T-Mobile has overtaken Sprint in market capitalization - the company is valued at about $51 billion, while Sprint has a market value of about $30 billion. (TMUS) unit in the United States is in merger talks with rival Sprint Corp.

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