Shares of Sprint whipsawed in after-hours trading after CNBC reported which T-Mobile will be closing in on a deal with the telecom company for $26 billion.
The deal would likely value Sprint shares near its market cost of $6.50, sources told CNBC.
The terms of the deal would likely allow Deutsche Telekom, which currently owns nearly two-thirds of T-Mobile, to consolidate the combined company’s earnings. SoftBank owns 85 percent of Sprint.
Shares initially plunged as much as 10 percent after Bloomberg reported the deal would likely value Sprint at $24 billion, or about $6.10 per share. which cost undervalues Sprint by about 40 cents per share. Sprint pared some losses in addition to was last trading down 8.3 percent.
The deal could be announced as soon as Sunday, though sources warned the deal was not final in addition to may still fall through. The companies came close to a merger agreement in November, before SoftBank CEO Masayoshi Son pulled out after weeks of talks.
Shares of Sprint are up more than 10 percent year-to-date.
–Thomson Reuters contributed to This kind of report.