Sources familiar with the matter claim that Sprint has approached sources of funding for a T-Mobile buy previously rumored in December
. Sprint executives Joe Euteneuer and Greg Block met with a half dozen banks to prepare financing agreements before Sprint signals that it is ready to make an offer. A deal to acquire the US telecom provider is expected during the early summer.
A report by the Bloomberg
news service notes that Sprint has been formulating a position to convince the Federal Communications Commission and the Department of Justice that the merger would not harm the US wireless industry. Regulators have historically denied large-scale acquisitions in the wireless industry -- this deal if completed would see the third- and fourth-largest carriers combine.
Sprint and parent company SoftBank want to make the offer while US regulatory boards are concerned with the Comcast purchase of Time Warner Cable. Any deal would require approval by the boards of directors of all four companies involved in the deal -- Sprint parent company SoftBank, T-Mobile parent company Deutsche Telekom, plus the Sprint and T-Mobile boards themselves.