Description:Â Sprint Nextel confirmed on Thursday that it was in talks with Softbank of Japan over a â€œpotential substantial investment.â€ A deal would give the struggling American cellphone service provider a deep-pocketed backer to help finance its turnaround effort.
Date: Oct 11, 2012
Questions for Discussions:
- Explain the reasons for the proposed merger and the criticisms by analysts.
- What does this report say about the capital investment requirements in this industry?
- Does Sprint represent a good investment to Softbank?
- What are the risks for current investors holding the stock?