South Korea wireless phone service provider SK Telecom is in talks to acquire U.S. wireless carrier Sprint Nextel (News - Alert), according a published report.

CNBC is reporting sources as saying, SK Telecom (News - Alert), which is smaller than Sprint Nextel would be joined in any deal by private equity firms that would contribute cash towards the purchase.

 

However, talks are in a preliminary phase and any agreement could be weeks away, according to the report.

 

The financial troubled Sprint Nextel has been losing customers to stiff competition from Verizon and AT&T (News - Alert) for several years now, and company brass is reportedly split over whether to sell. Staffers from Sprint told CNBC one segment believes a turnaround for the company is imminent.

 

The report also suggested the Korean outfit would not be interested in pursuing Sprint if there is a majority hold out.

One possible hold up in the deal could come through regulatory challenges of a foreign firm owning a wireless provider. However, this has been hashed out in the past as Deutsche Telekom (News - Alert) was successfully in acquiring T-mobile.

 

SK Telecom, which has over 22 million subscribers in South Korea and controls roughly half that country's wireless market.