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Deutsche Telekom may list T-Mobile USA
05 February 2010
Deutsche Telekom is consulting with banks over a possible offer of shares in its US business T-Mobile USA
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[T-Mobile]
[Deutsche Telekom]
[IPO]
[Deutsche Bank]
[Blackstone]
Deutsche Telekom is considering an initial public offering or a spinoff of its US wireless business, according to reports. The parent of T-Mobile USA has been in talks with banks including Deutsche Bank, about underwriting an IPO for the division.
Under other alternatives, a partial spinoff of the business will make T-Mobile USA a separate entity with its own balance sheet. A merger with rivals such as AT&T or Verizon Wireless is less likely due to potential regulatory and technological difficulties.
Deutsche Telekom’s ability to finance T-Mobile’s infrastructure is restricted as the German government still controls about 30% of the company.
Deutsche Telekom is said to be likely to sell about 20% of the unit to investors and retain its remaining stake. A part of the sale proceeds may be sent to shareholders such as Blackstone, which acquired a 4.5% stake in Deutsche Telekom in 2006 for $3.3 billion. GTB