Deutsche Telekom said to consider full combination with T-Mobile US

(Sharecast News) - Deutsche Telekom shares were under pressure on Wednesday following a report it is considering a full combination with its American arm T-Mobile US. According to Bloomberg, citing people with knowledge of the matter, the German carrier has been discussing the idea of creating a new holding company that would make a stock bid for shares of both Deutsche Telekom and T-Mobile.

The move would create a multinational telecom group and rank as the largest-ever public M&A deal.

Deutsche Telekom is already T-Mobile's biggest shareholder with a stake of about 53%.

Bloomberg said the potential deal would create a single, simplified corporate group that controls the operations of Deutsche Telekom and T-Mobile and would be jointly owned by the two companies' current investors.

It was understood the combined entity may then seek a listing in the US and a major European exchange, though the details are still being worked out.

At 1020 BST, Deutsche Telekom shares were down 2.8% at €27.98.