Sprint reaches deal with Japan's Softbank

WASHINGTON (AP) - Japanese mobile phone company Softbank has agreed to buy 70 per cent of Sprint Nextel for US$20 billion (S$24.5 billion), according to a news report.

The deal is expected to be announced on Monday, according to CNBC's web site, which cited anonymous sources "close to the situation." The transaction could make Sprint, the third-largest United States (US) mobile phone company, a tougher competitor against its bigger rivals, Verizon Wireless and AT&T.

Sprint has 56 million subscribers, about half the amount of Verizon Wireless, the leading US mobile phone company.

Softbank will buy US$8 billion in shares from Sprint and another US$12 billion from current Sprint shareholders, the CNBC report said. Softbank will offer US$7.30 a share, CNBC said, about 27 per cent above Friday's closing price of US$5.73.