Deutsche Telekom considering bid on Sprint Nextel

September 15, 2009

(ChattahBox) —  Europe’s largest telecom operator and owner of T-Mobile, Deutsche Telekom reportedly is again talking about floating a multibillion-dollar offer to buy Sprint Nextel.  According to a a Daily Telegraph report Deutsche Telekom has allegedly appointed Deutsche Bank to advise on a possible run at Sprint, valuing the U.S. cellular carrier at around $11 billion.Sprint is the third-largest wireless carrier in the United States with an estimated 48.8 million wireless subscribers, while T-Mobile is the fourth-largest carrier with an estimated 33.5 million wireless subscribers. A merger between the two would make T-Mobile the top U.S. mobile company. But rumors of a deal between the two companies keep popping up because Sprint and T-Mobile continue to lose money and lag far behind the larger Verizon and AT&T.  While investors drove the share price of Sprint-Nextel up today, incompatible networking technologies between the two companies – GSM, CDMA and IDen, and the high cost of the merger make this far from a sure thing.



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