Deutsche Telekom shares up on T-Mobile USA tie-up report
Shares in Deutsche Telekom rose sharply Thursday after a media report that the German telecommunications operator was mulling a tie-up between its T-Mobile USA subsidiary and a potential new partner.
Stocks in Deutsche Telekom were up 3.4 percent to 8.80 euros ($11.40) at around 1200 GMT on a slightly stronger DAX blue-chip index.
The giant, which reported earlier Thursday a halving in first-quarter net profit, is considering a deal to combine T-Mobile USA with US wireless provider MetroPCS Communications, the Financial Times said.
The newspaper said, based on two sources, that the deal was not final but could involve a stock-swap, giving Deutsche Telekom control of the new entity to be listed in the United States.
"We never comment on the incessant rumours" swirling around the German giant's US subsidiary, the head of Deutsche Telekom, Rene Obermann, said in a telephone news conference Thursday.
The group has been exploring options after its $39-billion-deal to sell T-Mobile USA to AT&T ran into opposition from US regulators last year.
© 2012 AFP