DEUTSCHE TELEKOM RUMORED TO BE CONSIDERING T-MOBILE USA SPIN-OFF

Circulating rumors suggest that T-Mobile USA's under performing financials may lead Germany's Deutsche Telecom to offload the fourth largest network operator in the U.S. According to the folks at the Wall Street Journal, DT is currently going over its options while meeting with Investment Banking firms. Deutsche Telecom might decide to spin off a percentage of T-Mobile USA while keeping the majority and get the under performing unit's financials off its books.

DT might also try to raise capital for T-Mobile through an IPO to fund its 3G network build-out. Another option would be to merge the fourth largest US network operator with another cellular operator. However, a merge with AT&T might be problematic as it would likely run into major regulatory hurdles.

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[Via: Phone Arena]