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Tuesday, January 29, 2013

U.S. Justice Department examining Softbank-Sprint deal, (NYSE: S)

The Justice Department and the Department of Homeland Security are examining the proposed takeover of Sprint Nextel by Japan's Softbank Corp for national security and other issues, and have asked the U.S. telecommunications regulator to defer any action on the deal.Softbank and Sprint agreed last year that Softbank Corp would pay $20 billion for control of Sprint Nextel Corp, giving the Japanese firm entry into the U.S. market and Sprint, the No. 3 U.S. carrier, much-needed cash.The Justice Department and the Department of Homeland Security wrote a letter to the Federal Communications Commission saying they were looking at the deal, according to a filing at the FCC on Tuesday."We therefore request that the commission defer action until such time as the agencies notify the commission of the completion of their review," the letter said.

Sprint Nextel Corporation (Sprint) is a holding company, with its operations primarily conducted by its subsidiaries. Shares of S traded higher by 1.62% or $0.09/share to $5.65. In the past year, the shares have traded as low as $2.10 and as high as $6.04. On average, 34871000 shares of S exchange hands on a given day and today's volume is recorded at 97049680.