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T-Mobile, and Sprint, to change the merger terms, SoftBank will take a hit

(Reuters) – T-Mobile US (TMUS.(O) and Sprint Corp (S. N) said on Thursday that they had agreed to the new merger, the terms of which would be to reduce the commitment of a major Sprint shareholder, SoftBank, as the other shareholders of the same.

FILE PHOTO: a Smartphone with a logo on the T-Mobile and Sprint can be seen in this figure, 19 September, 2017. REUTERS/dado Ruvic/Illustration

Under the revised deal, SoftBank (9434.(T) is maintained for about 24% of the merged entity would have a decrease by 27% under the previous terms and conditions. T-Mobile’s parent company Deutsche Telekom (DTEGn.DE), approximately 43% of the combined entity, and of the 42% of the German group, it would have to be held.

The shares of as high as 5% to $9.95, while T-Mobile decreased 1.5% to $98 in trading after the bell.

SoftBank has consented to the surrender, about 48.8 million and T-Mobile shares acquired in the merger, the new company after the deal closes, the change in the exchange rate of up to 11, with Sprint shares for each T-Mobile share, which is higher than the originally agreed upon 9.75 shares.

Sprint’s shareholders (other than SoftBank and will continue to be received in the original exchange.

They turned from the shares of the combined company and the hits of stock-price milestones, the companies said, without disclosing the details.

Sources said SoftBank agreed to make the change, to avoid delaying the closing of the merger. If the ratio of the final Sprint to common shareholders has been amended, a new fairness opinion and the shareholder vote may be required, which would have delayed the conclusion of the four-month period.

The companies hope to close on the 1st of April.

The Wall Street Journal first reported the news.

Last week, a federal judge approved the merger deal, which is the date of the rejection of a claim by a group of member states, said that the proposed merger would violate anti-trust laws and price increases.

In New York city on Sunday, had to step up its fight against the merger of the U.S. wireless carriers, saying the state would not appeal the court’s approval of the deal.

Deutsche Telekom CEO Tim Hoettges said on Wednesday that the new T-Mobile would have a market value of about $120 billion. That compares with the a $274-billion for AT&T (T. N) and $242 billion for Verizon’s <VZ.N

(This story was refiled to remove extraneous word in first paragraph).

Reporting by Neha Malara and Sanjana Shivdas in Bengaluru; additional reporting by Greg Roumeliotis and Peter Henderson; Editing by shailesh Kuber and Cynthia Osterman

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