Deutsche Telekom (DT) has ruled out the sale of its T-Mobile US subsidiary, and will now try to push through a merger with rival US operator Sprint, German journal Handelsblatt has reported. Sources close to DT’s executive and supervisory board have indicated that the telco’s preference is for a ‘paper deal’ done in shares rather than cash, and the German firm wants to take managerial control of the combined entity.
As previously reported by TeleGeography’s CommsUpdate, in June 2014 Sprint unveiled a USD32 billion (USD40 per share) offer for T-Mobile US. The deal, which would have seen T-Mobile US retain a roughly 15% to 20% stake in the combined company, was eventually abandoned by Sprint owner SoftBank Group Corp, after a hostile reception from the US authorities. It remains unclear as to how the combination would be viewed by the Trump Administration, although new FCC chairman Ajit Pai is widely viewed as more business-friendly than his predecessor, Tom Wheeler.