The last few days have seen both T-Mobile and Sprint release their respective earnings report for Q3 2017. Their most recent quarterly reports, however, did not mention any new information about the status of the possible merger deal between the two major US wireless carriers. Still, there are reports that both companies are actually still busy finalizing the details of the tie-up.
For instance, Reuters has reported that T-Mobile and Sprint are preparing special committees of their boards of directors, in order to make a decision on whether or not to push through with the merger deal. These board committees are critical, mainly because both mobile operators are majority owned by Deutsche Telekom AG from Germany and SoftBank Group Corp from Japan, respectively, and they could be sued by minority shareholders if they fail to implement ground rules that would help ensure the deal would be reviewed independently.
The Reuters report stated that the two national mobile operators have already assembled special committees made up of independent board directors. The merger agreement is expected to be finalized in the next three weeks, and when that happens, the board committees will then deliberate if the merger deal will be signed. To make sure that the details of the merger agreement can be reviewed extensively, the committees have also acquired the services of financial advisers.
Another report published by The Wall Street Journal says that the deal will be all-stock, with Deutsche Telekom AG (the parent company of T-Mobile) to hold control over the new business entity as a result of the merger. John Legere, the current chief executive officer of T-Mobile, will head the combined company, while current Sprint chairman and SoftBank Mobile CEO, Masayoshi Son, will serve as co-chairman together with Deutsche Telekom CEO, Tim Höttges.
Interestingly, the Wall Street Journal report stated that the transaction will not involve any cash breakup fee. If US regulators do veto the proposed merger, T-Mobile is expected to offer Sprint a special roaming deal that would allow Sprint subscribers to connect to T-Mobile’s cellular towers, particularly in locations not covered by Sprint’s network.
Source: Tmo News