Sprint nextel and softbank nears a deal

Sprint Nextel confirmed on Thursday that it was intalks with Softbank of Japan over a"potential substantial investment." A deal would give the struggling American cellphone service provider a deep-pocketed backerto help finance its turnaround effort. Talks are at an advanced stage, and a transaction may be announced soon, a person briefed on the matter said on Thursday. But the person cautioned that details were still being negotiated and a transaction may not transpire. In a brief statement, Sprint said: "Although there can be no assurances that these discussions will result in any transaction or on what terms any transaction may occur,such a transaction could involve a change of control of Sprint. Sprint does not intend to comment further unless and untilan agreement is reached."If a deal is completed, Sprint would gain substantial financial heft. SoftBank, one ofJapan's biggest cellphone service providers, could provide additional resources for Sprint build out its next-generation network. Sprint has long labored in the shadow of its bigger rivals, Verizon Wireless and AT&T, and in recent years has sought to compete primarily on price. But the company risked being overshadowed by T-Mobile USA's plan to merge with MetroPCS, a deal thatcould create a tougher competitor in the lower end of the cellphone market. Sprint currently has 56 million customers,while the newly enlarged T-Mobile would have 42.5 million subscribers.