Sprint Corp. has cut off acquisition talks with T-Mobile US Inc. and plans to name a new chief executive to replace CEO Dan Hesse, according to a person familiar with the situation.
Overland Park, Kan.-based Sprint, the third-largest wireless company in the U.S., reportedly saw its months-long pursuit of T-Mobile, the No. 4 U.S. carrier, stall over disagreements about financing and a drop-dead date for the merger.
T-Mobile, which is controlled by German company Deutsche Telekom AG, indicated it was willing to make a deal if Sprint, which is owned by Tokyo-based SoftBank, agreed to a list of requirements. Bellevue, Wash.-based T-Mobile last week rebuffed the advances of French suitor Iliad SA, which made a $15 billion offer for T-Mobile, and indicated a preference for a potential Sprint bid.
But both Sprint and T-Mobile had concerns about resistance to a deal from U.S. regulators, who have expressed a desire to maintain the current competitive landscape of four large wireless carriers in the country.