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2017.02.1923:57:00UTC+00SoftBank Shares Jump on Report Firm Willing to Yield Sprint Control

SoftBank Group Corp. shares' advanced almost three percent in early Asian trade after Reuters reported that the Japanese conglomerate is willing to relinquish its control of Sprint Corp. to T-Mobile U.S. Inc. in order to push through with a merger of the two U.S. wireless carriers.

SoftBank is anticipated to communicate with T-Mobile parent company, Deutsche Telekom AG to hold talks in April, when an ongoing sale of airwaves and and a ban on negotiation discussions between rivals is eased, according to people privy to the matter.

A possible deal could provide a boost for SoftBank's push to be in a “Berkshire Hathaway"-level company with advanced and significant investments in the tech industry.

The money raised from the potential sale of a part or the entirety of SoftBank's holdings in Sprint to another party could enhance the firm's credit rating and allow it to focus its resources in expanding its business.

While SoftBank's local mobile business continues to be strong and provide strong revenue, analysts stated Sprint might face difficulties inducing growth independently as it lacks the capacity to compete with its larger competitors.

SoftBank CEO Masayoshi Son said that Sprint's swing to profits had redirected the firm's focus from the merger towards other opportunities.

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