Sprint Corp. share price up, Chairman Son says he is willing to acquire T-Mobile to compete with AT&T and Verizon

Mr. Masayoshi Son, President of SoftBank Corp. announced in a television interview that he would like to acquire T-Mobile US Inc. through his Sprint Corp. and intends start a “massive price war” in case the deal is approved by U.S. regulators. SoftBanks President also revealed that he would like implement infrastructure improvements in order to offer faster Internet access in the U.S.

As reported by Bloomberg, he said in the interview: “The mobile Internet, the Internet highway, is the most important infrastructure for the 21st century.” According to a person with knowledge of the plans, Sprints Chairman has been willing to purchase T-Mobile US Inc. since the acquisition of Sprint Corp.

Mr. Son confirmed that he is interested in combining the third and fourth-largest wireless companies in the U.S. into one new entity, after purchasing the control over the third-largest wireless carrier in 2014. He explained that such a merger would provide him with a head-start in the rivalry with both Verizon Communications Inc. and AT&T Inc.

Sprint Corp.s Chairman said in the interview, which was cited by Bloomberg: “We need a certain scale, but once we have enough scale to have a level fight, OK. It’s a three-heavyweight fight. If I can have a real fight, I go in more massive price war, a technology war.”

As reported by the Wall Street Journal, Mr. Son said: “We would like to make the deal happen, but there are steps and details that we have to work out.” He also said that Sprint Corp. has “not yet” made a bid for T-Mobile US Inc. but he assured Charlie Rose, who interviewed him, in his intentions to “give a shot”. Mr. Son, however, remains “concerned an acquisition wont be approved” by the countrys regulators, according to Naoki Fujiwara, who is the Chief Fund Manager of Shinkin Asset Management Co.

As reported by the the Wall Street Journal, U.S. regulators have said they are pleased with the existing balance of four national operators.

T-Mobile US Inc. rose by 0.58% on Monday in New York to $30.97, marking a one-year change of +124.12% and a market value of $24.85 billion. According to CNN Money, the 17 analysts offering 12-month price forecasts for T-Mobile US Inc. have a median target of $35.00, with a high estimate of $42.00 and a low estimate of $12.00. The median estimate represents a +13.01% increase from the previous close.

Sprint Corp. jumped by 0.93% on Monday to settle at $8.71, raising the companys market capitalization to $34.28 billion. According to CNN Money, the 19 analysts offering 12-month price forecasts for Sprint Corp. have a median target of $7.50, with a high estimate of $10.50 and a low estimate of $5.00. The median estimate represents a -13.89% decrease from the previous close.