Fire Alarm Companies

The agreement of U.S. $ 21.1 billion for a stake in the airline U.S. No. 3 is the most widely used acquisition abroad by Japanese mobile operator

Japanese mobile operator Softbank Corp said it will buy up to 70% of Sprint Nextel Corp., the airline third United States, for $ 21.1 billion (£ 13 billion) - another Japanese firm has spent in a foreign acquisition.

The agreement - announced jointly by the billionaire founder and CEO of Softbank, Masayoshi Son, CEO Dan Hesse and Sprint, during a press conference in Tokyo - allows entering a U.S. market States continues to record growth, while Softbank home market is stagnant.

firepower to buy their peers and enhance its 4G network to better compete in a market dominated by the U.S. AT & T Wireless and Verizon Wireless, according to analysts.

While U.S. analysts have long said that the telecommunications industry needs consolidation, some turned to Japan as a catalyst. But the son, known for his risk-taking, is betting that U.S. growth may provide relief from the fierce competition for subscribers in the mobile market in Japan full.

Together, Softbank and Sprint have 96 million users.

Softbank said that under the agreement to purchase $ 3.1 billion of bonds convertible into shares of Sprint at $ 5.25 per share. Share Sprint closed Friday at $ 5.73.

from Softbank fell more than 8% earlier Monday, closing at its lowest level in five months, up 5.3%. The stock has lost more than a fifth of its value - or $ 8.7 billion - since the news broke last week in the interest of society as Sprint. Investors are worried Son can offer much to enter the U.S. market for telecommunications.

"There's always a risk when faced with a challenge:" My son said at the meeting. "It might be safe if you do nothing and our challenge in the United States is not going to be easy. We are entering a new market, one with a different culture, and you have to start from scratch after all we built . challenge but it will be a greater risk. "

Four banks approved loans totaling 21.1 billion yen ($ 1.65tn) Softbank, told Reuters earlier on Monday sources. Mizuho Financial Group and Sumitomo Mitsui Financial Group, Mitsubishi UFJ Financial Group and Deutsche Bank filed a commitment letter pledging loans Softbank Monday.

Softbank bought Vodafone Japan unit for $ 15.5 billion in a 2006 agreement that has propelled the company into the business of mobile operator.

"Son become a company worth 3 billion yen and yen worth now 6TN. This is quite impressive, and I think investors will realize that you are the right decision in the way "Nakanishi said.

Analysts said the case would be worth approximately $ 28.6bn Sprint, two-thirds more than its market capitalization at the end of Friday.