Sprint's stock surges on potential Softbank deal

October 11, 2012: 11:34 AM ET
Wedding season for wireless
NEW YORK (CNNMoney)

Shares of Sprint Nextel surged Thursday as it negotiated with Japanese wireless carrier Softbank, which might buy a controlling stake in the company.

Sprint Nextel's (S) stock jumped 18% in morning trading.

"Sprint is currently involved in discussions with Softbank regarding a potential substantial investment by Softbank in Sprint," said Sprint in a prepared statement.

Sprint said "such a transaction could involve a change of control," but it emphasized that there are "no assurances" that the deal will go through.

The share price for Internet service provider Clearwire (CLWR) also surged, climbing 40% in morning trading, as CNBC reported that Clearwire might also get taken over as part of the deal.

Sprint Nextel is the third-largest wireless carrier in the United States, trailing AT&T (T) and Verizon (VZ) in market share. But the company has continued to lose money, despite finally adding Apple's (AAPL) iPhone to its network last year.

Related: M&A drought not letting up

A spokesperson for Softbank Corp (SFTBF) was not immediately available for comment.

There had been speculation that Sprint Nextel would make a counteroffer for MetroPCS (PCS), which recently agreed to merge with Deutsche Telekom's T-Mobile USA unit. Shares of MetroPCS fell 5% in early trading.

Join the Conversation
Markets
Sponsored by
Index Last Change % Change
Dow 17,279.74 13.75 0.08%
Nasdaq 4,579.79 -13.64 -0.30%
S&P 500 2,010.40 -0.96 -0.05%
Treasuries 2.59 -0.04 -1.60%
Data as of 8:42pm ET
Company Price Change % Change
Yahoo! Inc 40.93 -1.16 -2.74%
Microsoft Corp 47.52 0.84 1.80%
Bank of America Corp... 16.95 -0.09 -0.53%
Oracle Corp 39.80 -1.75 -4.21%
Facebook Inc 77.91 0.91 1.18%
Data as of Sep 19