FRANKFURT Oct 2 Deutsche Telekom on
Tuesday confirmed it is in talks with smaller peer MetroPCS
over a combination of their operations in the United
In a regulatory filing, Deutsche Telekom said the aim of the
combination would be to operate its subsidiary T-Mobile USA and
MetroPCS "within one company in which Deutsche Telekom would
hold the majority of shares."
The company added that significant issues have not yet been
finalized, contracts have not yet been signed, and the
conclusion of the transaction is still not certain.
The Board of Management and Supervisory Board of Deutsche
Telekom have therefore not yet taken the resolutions necessary
for such a transaction, Deutsche Telekom said.
Earlier on Tuesday, Reuters reported on advance talks
between the two companies.
Deutsche Telekom tried to sell its U.S. business T-Mobile
USA, once a strong growth engine, to AT&T for $39 billion
but fierce regulatory opposition scuppered the deal, leaving the
German company with a $6 billion breakup package.
(Reporting By Harro Ten Wolde and Edward Taylor)