T-Mobile, Sprint Amend Merger Terms, SoftBank Takes a Hit

T-Mobile US and Sprint said on Thursday that they had agreed on new merger terms that would reduce the stake of major Sprint shareholder SoftBank, while leaving the offer to other shareholders unchanged. Under the revised deal, SoftBank will hold about 24 percent of the combined entity, down from 27 percent under the earlier terms. T-Mobile's parent Deutsche Telekom will hold about 43 percent of the combined entity, up from the 42 percent that the German group would have held.

Shares of Sprint were up 5 percent to $9.95, while T-Mobile fell 1.5 percent to $98 in trading after the bell.

SoftBank has agreed to surrender about 48.8 million T-Mobile shares acquired in the merger to the new company after the deal closes, changing the exchange ratio to 11 Sprint shares for each T-Mobile share, higher than the originally agreed 9.75 shares.