Sprint Communications and Starburst II petitioned the New York State...
Sprint Communications and Starburst II petitioned the New York State Public Service Commission asking for a change, if permission is required, in the companies’ organization on the parent holding company level. After SoftBank acquired a majority interest in Sprint in…
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October, it created a U.S. holding company called Starburst I, which then created another called Starburst II, the Wednesday petition said (http://xrl.us/bn27ae). The petition describes a deal “under which Starburst II will become the direct parent of Sprint Nextel Corporation ('Sprint') and indirect parent of Sprint Communications and by which SOFTBANK CORP. ('SoftBank') will, through its newly formed affiliate Starburst I, Inc. ('Starburst I'), invest $20.1 billion in Sprint and indirectly acquire approximately 70 percent of the shares of Sprint.” The companies don’t anticipate any changes in service in New York and plan to make the “seamless” deal transparent, they said. The petition pledges that “Sprint Communications’ parent will be a stronger more effective competitor” if the transaction goes forward. Amid these transactions, Sprint will soon become Starburst II and Sprint CEO Daniel Hesse will be renamed CEO of Starburst II, which will be renamed Sprint Corp., the petition explained. Sprint will receive significant finances from this deal, which will speed broadband deployment and improve the telco’s wireline balance sheet, the companies said.