Softbank Corp., in talks to buy a majority stake in Sprint Nextel Corp., is seeking to avoid the pitfalls that have soured investments in the U.S. telecommunications industry by the biggest phone companies.
Sprint said Thursday that it’s in talks to take a “substantial” investment from the Japanese carrier. Softbank, Japan’s third-largest mobile-phone company, also plans to buy MetroPCS Communications Inc. through Sprint, the Nikkei newspaper reported.
Softbank stock plummeted amid concern that turning around unprofitable Sprint will prove costly.
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