Deutsche Telekom seeks breakup fee of over $1 billion on T-Mobile-Sprint deal: WSJ

Sat May 10, 2014 1:42am EDT

The T-Mobile store sign is seen in Broomfield, Colorado February 25, 2014. REUTERS/Rick Wilking

The T-Mobile store sign is seen in Broomfield, Colorado February 25, 2014.

Credit: Reuters/Rick Wilking

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(Reuters) - Deutsche Telekom AG (DTEGn.DE) wants to be compensated by Sprint Corp (S.N) in the event its planned merger with the German firm's T-Mobile US Inc (TMUS.N) does not win regulatory approval, the Wall Street Journal reported, citing people familiar with the matter.

Deutsche Telekom AG (DTEGn.DE), which currently owns 67 percent of T-Mobile, expects a breakup fee of more than $1 billion, according to the people cited in the report.

The company also wants T-mobile's brand and some of its management team to be retained after a merger, the Journal cited the sources as saying. <>

Reuters reported on May 1 that Sprint is facing a battle with U.S. regulators who oppose consolidation in the wireless market on the basis it would inhibit competition. The company is aware it may have to give up some of its spectrum holdings to win over critics, according to a Reuters source.

T-Mobile and Deutsche Telekom could not be reached immediately for comment outside of normal business hours.

(Reporting By Abinaya Vijayaraghavan; Editing by Ken Wills)

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Comments (4)
nearmsp wrote:
T-mobile is selling the same horse twice. First they successfully sold it to AT&T and now these willy Germans will sell it to the Japanese owned Softbank that is majority owner of Sprint. Stupid Son, is going to throw more good money after a really bad investment (sprint).

May 09, 2014 11:33pm EDT  --  Report as abuse
Hey, I’ve got a better idea — don’t sell T-mobile!!! The company is on a roll and doing everything right, while Sprint is completely inept. For the sake of T-mobile users everywhere, don’t sell out to Elmer Fudd!!!

May 10, 2014 1:28am EDT  --  Report as abuse
FuadYaqubian wrote:
A merger between Sprint and T-Mobil will inhibit competition. T-Mobil has done a lot to bring down cell phone charges in the US and should continue to do so. Sprint’s charges are usually outrageous.

May 10, 2014 10:00am EDT  --  Report as abuse
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