Report: Softbank looks to acquire Sprint Nextel for $12.8 billion

From CNET News.com: Japan's Softbank is eyeing a major acquisition of Sprint Nextel, according to a new report.

The Japanese mobile carrier is in advanced talks with Sprint Nextel to acquire the U.S.-based carrier for $12.8 billion, the Wall Street Journal is reporting today, citing sources. So far, details are slim and there's no telling if the companies might actually arrive at a deal.

Softbank moved quickly to downplay the report, issuing this terse statement this morning: "The story about SoftBank and Sprint Nextel Corporation being reported is based on speculation. We have not announced anything. We do not comment on speculation."

If Softbank were to acquire Sprint, it would be the second major transaction in the mobile industry lately. Just last week, Deutsche Telekom announced plans to acquire regional carrier MetroPCS and merge it with T-Mobile.

Soon after that deal was announced, reports surfaced saying that Sprint was considering making its own bid for MetroPCS to head off a merger with T-Mobile. That plan was reportedly thrown on ice to give Sprint time to see exactly what Deutsche Telekom offered and determine whether its own acquisition bid would make sense.

A combination of T-Mobile and MetroPCS would present a serious challenge to Sprint in the rough-and-tumble prepaid wireless business even as Verizon Wireless and AT&T continue to grow at the high end.

Softbank, long headed by CEO Masayoshi Son, has nearly 30.5 million subscribers across Japan, making it one of the largest carriers in that country. According to the company's corporate data page, Softbank currently has over 177 billion yen (about $2.3 billion) in capital, so it's possible the company might use its stockpile to help fund the massive Sprint deal.

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