Andre Yoskowitz
3 Oct 2012 1:03
Deutsche Telekom is speaking again with MetroPCS in an effort to possibly merge its T-Mobile USA carrier with the smaller pre-paid brand in an effort to better compete with AT&T and Verizon.
The plan will merge the companies but leave Telekom as the majority shareholder. Deutsche Telekom's supervisory board could approve such a transaction as soon as tomorrow, say the sources.
T-Mobile USA has 33 million subscribers, the smallest of the majors in the U.S. MetroPCS has about 9.5 million, meaning they would still be the smallest major carrier in the nation, even after the merger.
"The talks are at a stage where significant issues have not yet been finalized, contracts have not yet been signed and the conclusion of the transaction is still not certain," added Deutsche Telekom in a statement. "The board of management and supervisory board of Deutsche Telekom have therefore not yet taken the resolutions necessary for such a transaction."
Both MetroPCS and Telekom investors seemed very excited by the prospects of the merger, moving their stock prices.