Mergers and Acquisitions Report: SoftBank In Talks To Buy Majority of Sprint and All of Clearwire

At mid-afternoon Thursday, SoftBank Corp. (SFTBF.PK) is in discussions with Sprint Nextel Corporation (NYSE:S) over a “potential substantial investment” that could lead to a change of control, said the latter firm’s Chief Executive Dan Hesse in an email to employees, who added that the deal “may or may not occur.” In addition, David Faber asserts that SoftBank’s talks with Sprint also cover the acquisition of Clearwire Corporation (NASDAQ:CLWR), whose shares are currently somewhere in orbit while those of Sprint have gained about 10 percent. In the meantime, shares of MetroPCS Communications (NYSE:PCS) are up and down as observers figure that a SoftBank acquisition will make it less likely that Sprint will make a counter-offer to the T-Mobile deal, thus placing the carrier in a worse competitive position. Leap Wireless International (NASDAQ:LEAP) shares have moved up in sympathy.

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