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T-Mobile Weighing MetroPCS Merger
As Deutsche Telekom Tries to Grow Struggling T-Mobile Business
by Karl Bode 06:08PM Wednesday May 09 2012
Bloomberg reports that T-Mobile owner Deutsche Telekom is considering merging T-Mobile with MetroPCS. Anonymous sources tell the news outlet that the deal would be a stock-swap transaction that results in Deutsche Telekom retaining control over the new merged company. The same sources state that Deutsche Telekom is also considering either an initial public offering or an outright sale of T-Mobile USA -- and is in talks with additional companies about potential mergers. Sprint was close to acquiring MetroPCS earlier this year, but a last minute vote scrapped the deal. Sprint's board worried whether the company would be able to handle an acquisition in addition to building a new LTE network and shelling out a substantial fortune to finally offer the iPhone.