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The deal purportedly fell apart after SoftBank and Deutsche Telekom, T-Mobile’s owner, failed to agree on terms of ownership for the company post-merger. Deutsche Telekom had pushed for a controlling stake, Nikkei news service reported, citing a source familiar with the situation.
T-Mobile’s stock fell more than 5% in trading on Monday. Sprint shares plunged more than 7%. SoftBank officials could approach Deutsche Telekom to formally end negotiations as early as Tuesday, according to Nikkei’s report.
Reports of a potential merger between the two companies first emerged in September. Under initially-discussed terms, Deutsche Telekom was set to be the majority owner in a stock-for-stock deal. At the time, SoftBank CEO Masayoshi Son had reportedly mandated that he have a say in how the company proceeded if the merger succeeded, though T-Mobile CEO John Legere was projected to lead the combined companies.