Japan’s SoftBank is preparing to hand the US government an unusual degree of influence over operation of Sprint Nextel, after security concerns raised by the proposed cross-border takeover, The Wall Street Journal reports online.
“Tokyo-based SoftBank has agreed to give the (US) federal government the right to approve one of the directors it names to Sprint’s board,” the WSJ reported.
The director would be responsible for overseeing national security issues, the report added.
“People familiar with the matter said the government is also seeking the right to approve some of Sprint’s equipment purchases and wants the removal of Chinese gear from a Sprint affiliate’s network.”
The Japanese mobile operator said Tuesday it planned to raise $3.9 billion through a record bond issuance in June to finance its proposed takeover of US firm Sprint Nextel.
If successful, the 400-billion-yen ($3.9-billion) bond issue would be the biggest debt of single maturity sold to retail investors by a non-financial company in Japan, news reports said.
Though funding may be in the pipeline, US concerns about security are growing.
Last month, Softbank President Masayoshi Son defended his proposed $20 billion takeover of Sprint Nextel, amid fears for the extra debt loading it would entail.
Japan's SoftBank to give US govt Sprint board choice: WSJ
