{"id":278071,"date":"2010-02-05T15:52:42","date_gmt":"2010-02-05T20:52:42","guid":{"rendered":"tag:contentnext.com,2010-02-04:article\/419-deutsche-telecom-may-be-mulling-spin-off-or-ipo-for-t-mobile-usa"},"modified":"2010-02-05T15:52:42","modified_gmt":"2010-02-05T20:52:42","slug":"deutsche-telecom-may-be-mulling-spin-off-or-ipo-for-t-mobile-usa","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/278071","title":{"rendered":"Deutsche Telecom May Be Mulling Spin-Off Or IPO for T-Mobile USA"},"content":{"rendered":"

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Deutsche Telekom (NYSE: DT<\/a>) is considering a number of options for its struggling T-Mobile USA subsidiary, including a possible IPO or spinoff, reports the WSJ<\/a>, which quotes people familiar with the matter.<\/p>\n

As of recently, DT was rumored<\/a> to have been in merger talks with Sprint (NYSE: S<\/a>) or Clearwire (NSDQ: CLWR<\/a>). However, either combination would be technically and financially challenging. But T-Mobile, the fourth-largest U.S. wireless carrier, needs a new strategy that can reverse its recent performance, which includes losing customers while AT&T (NYSE: T<\/a>) and Verizon have been gaining millions.\n<\/p>\n

A final decision likely won’t come for a couple of months—only recently has DT started to talk to a number of banks about underwriting an IPO, which could help fund network expansion, or a spinoff. A DT spokesman declined to comment.<\/p>\n

People familiar with the deal said the most likely scenario would be for DT to sell about 20 percent of the division to investors and retain the rest. A merger with a U.S. rival may also still be in the card, but that scenario is now less likely. Based on the company’s estimated earnings, the company may have a value of about $20 billion and could handle about $12 billion or so in debt, the WSJ reports. It will need more cash to continue its 3G build-out, and to buy the rights to more airwaves as networks move to 4G.<\/p>\n

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Deutsche Telekom (NYSE: DT) is considering a number of options for its struggling T-Mobile USA subsidiary, including a possible IPO or spinoff, reports the WSJ, which quotes people familiar with the matter. As of recently, DT was rumored to have been in merger talks with Sprint (NYSE: S) or Clearwire (NSDQ: CLWR). However, either combination […]<\/p>\n","protected":false},"author":2853,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-278071","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/278071","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/2853"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=278071"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/278071\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=278071"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=278071"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=278071"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}