German powerhouse Deutsche Telekom (DT) is considering raising its stake in T-Mobile US, German business daily Handelsblatt reports, citing a person familiar with the discussions. The source indicated that DT CEO Timotheus Hoettges sees more growth potential in the US than in Europe and has won over the previously sceptical supervisory board with promises of domestic network investments worth billions. If approved, Mr Hoettges is expected to announce the US-led strategy to shareholders at a capital markets day tomorrow (Thursday 20 May).
According to TeleGeography’s GlobalComms Database, the long-running merger between T-Mobile US and Sprint Corp closed on 1 April 2020, with DT securing majority control of ‘New T-Mobile’ as a result of the all-stock transaction. As a result, the enlarged operator is now 43.5%-owned by DT, while SoftBank Group Corp of Japan retained an 8.6% stake. DT has a call option to acquire the rest of SoftBank’s T-Mobile shares, which will expire in 2024.