News & Events

SoftBank stock surges to seven-month high after judge OKs Sprint-T-Mobile merger – Source Reuters Tech News

TOKYO (Reuters) – SoftBank Group Corp (9984.T) stock surged to its highest price in over half a year in Tokyo on Wednesday, after a U.S. federal judge rejected an antitrust challenge to the proposed takeover of subsidiary Sprint Corp (S.N) by T-Mobile US Inc (TMUS.O).

FILE PHOTO: People walk behind the logo of SoftBank Corp in Tokyo December 18, 2014. REUTERS/Toru Hanai

The ruling brings the Japanese technology conglomerate a significant step closer to slashing its exposure to a troubled asset at a time when other major bets face investor scepticism, and as it struggles to find backing for a successor to its $100 billion Vision Fund.

“This is obviously great news for Sprint… It is better news for SoftBank,” analyst Kirk Boodry at Redex Holdings wrote in a note on the Smartkarma platform.

A deal would remove the risk of SoftBank having to inject further funds into Sprint, though T-Mobile may push for better terms given Sprint’s relative weakness, Boodry wrote.

Sprint is one…

Read More…

Source Reuters Tech News

Source link