Deutsche Telekom AG (DTE) is discussing a merger of its T-Mobile USA unit with MetroPCS Communications Inc. (PCS) as it reviews options for the customer-losing business, according to people familiar with the matter.
Deutsche Telekom is considering a stock-swap transaction that would give the German company control over the combined entity, which would be publicly listed, said two of the people, who declined to be identified because the talks are private. Other options include an initial public offering or an outright sale of T-Mobile USA, the people said, adding that Deutsche Telekom is also in talks with other companies. MetroPCS shares jumped as much as 29 percent in New York.
Full Story: Deutsche Telekom Said to Discuss MetroPCS Deal for T-Mobile