Reuters: Regulatory News: UPDATE 1-Sprint, SoftBank agree to national security deal with U.S.

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UPDATE 1-Sprint, SoftBank agree to national security deal with U.S. May 29th 2013, 12:14 Wed May 29, 2013 8:14am EDT May 29 (Reuters) - Sprint Nextel Corp and Japan's SoftBank Corp said on Wednesday they had entered into a national security agreement with U.S. authorities related to the Japanese company's pending $20.1 billion deal to win control of the wireless carrier. The companies said they had received notice from the Committee on Foreign Investment in the United States (CFIUS) that it had completed its review of the proposed deal and that there were no unresolved issues. The statement from the companies did not include details of the agreement with CFIUS, a committee that includes the Department of Justice, the Federal Bureau of Investigation and the Department of Homeland Security. Clearance from CFIUS is the first of several regulatory approvals needed to complete the deal, which now needs to be reviewed by the Federal Communications Commission. Reuters, quoting sources, reported on Tuesday that as part of an unusual agreement, the government would have a veto over equipment purchases by Sprint in certain circumstances if the companies merged. The government would also establish a four-member oversight committee to make sure the companies abided by their national security promises, Reuters reported. The sources said SoftBank had agreed to remove equipment made by China's Huawei Technologies Co Ltd from Sprint and Clearwire Corp's networks if the deal was completed by the end of 2016. Japanese mobile operator SoftBank agreed to buy a 70 percent stake in Sprint last October. The deal faces a challenge from Dish Network Corp, a U.S. satellite TV provider that launched a rival $25.5 billion bid for Sprint last month. Dish has taken out full-page ads in Washington newspapers warning that a SoftBank-Sprint merger would threaten U.S. national security, a growing issue at a time of fears about Chinese espionage. Sprint shares were little changed at $7.26 in premarket trading. Dish shares were untraded. Link this Share this Digg this Email Reprints

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