T-Mobile shares fell Tuesday after a report that its main shareholder, Deutsche Telekom, may fully merge with the U.S. carrier. Such a deal would need approval from both German and American regulators and politicians.
Deutsche Telekom owns 53% of T-Mobile and is in early merger talks, the report said. The German government and bank KfW together own about 28% of Deutsche Telekom, so any deal would face scrutiny in both countries.
T-Mobile shares closed lower on Tuesday, following the merger report, but recovered somewhat in premarket trading on Wednesday. Meanwhile, Deutsche Telekom shares dropped more sharply on Tuesday, ending down over 2% in Frankfurt.
The reported discussions are at an early stage, and no specific terms have been disclosed. T-Mobile’s chief executive. The talks are still in the early stages, and no details have been shared. T-Mobile’s CEO used to lead Deutsche Telekom, which could help the companies communicate, but the deal would still be complicated because of the many regulators involved. Evaluation regarding corporate activity; no specifics to share.
