Deutsche Telekom Considering Sprint Nextel Bid
Sep 13, 2009, 12:00 PM by Eric M. Zeman
According to sources cited by the UK Telegraph, Deutsche Telekom -- parent to T-Mobile USA -- is seriously considering a bid for Sprint Nextel. The company has been examining the idea for a year, but the Telegraph's sources say that Deutsche Telekom has been making serious preparations to place a bid for about three months now. Sprint is valued at about $10.6 billion, and Deutsche Telekom would need to raise capital to make the purchase. If the purchase goes through, the Telegraph's sources indicate that Deutsche Telekom would likely merge Sprint Nextel with T-Mobile USA. Deutsche Telekom has been looking for ways to improve the financial performance of T-Mobile USA, and recently merged its UK and French operations. A combined T-Mobile USA / Sprint Nextel entity would come close to equaling AT&T's 78.2 million customers. Sources did not say how the technology differences between T-Mobile USA (GSM, LTE) and Sprint Nextel (CDMA, WiMAX) would be resolved. All the companies involved declined to comment for the Telegraph story.
This forum is closed.