Sprint shares drop more than 5% on report that Softbank is calling off talks with T-Mobile

Tomohiro Ohsumi | Getty Images

SoftBank Group Corp. Chairman and Chief Executive Officer Masayoshi Son speaks during a press conference on May 10, 2017 in Tokyo, Japan.

The merger negotiations to combine Sprint and T-Mobile are in jeopardy, according to a Nikkei report Monday.

“SoftBank Group plans to break off negotiations on a merger between subsidiary Sprint and T-Mobile US amid a failure to agree on ownership of the combined entity,” the Japanese financial news agency said.

Nikkei said the point of contention was over T-Mobile owner Deutsche Telekom’s request to have control over the combined company. SoftBank reportedly decided it “would not give up control.”

Sprint shares dropped more than 11 percent, while T-Mobile stock dropped 5 percent after the report.

Reuters and Dow Jones both confirmed that SoftBank was hesitant to give up control of Sprint.

Read the full report on Nikkei