Deutsche Telekom, Sprint talk T-Mobile USA merger - report

News Wireless United States 9 MRT 2011
Deutsche Telekom, Sprint talk T-Mobile USA merger - report
Deutsche Telekom has held talks to sell its T-Mobile USA unit to Sprint Nextel in exchange for a major stake in the combined entity, people with knowledge of the matter told Bloomberg News. Talks have been on and off, and a deal may not be reached, said the sources. The companies haven't been able to agree on the valuation of T-Mobile USA, which reported a drop in profit in the fourth-quarter, according to the report. The German aoperator may be looking for a price of around USD 25 billion, based on T-Mobile USA's earnings, but the mobile operator's recent customer losses could mean Sprint is willing to pay much less. Deutsche Telekom confirmed a sale was under consideration. "In general, all options are open in the US -- the sale of the whole business or of parts," Deutsche Telekom CFO Timotheus Hoettges said. T-Mobile USA is also discussing buying wireless spectrum from Clearwire as an alternative to a merger with Sprint, two people told Bloomberg.

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