BONN (Thomson Financial) - Deutsche Telekom AG. held preliminary talks with
mobile operator Sprint Nextel Corporation, industry sources told Thomson
Financial News partner dpa-AFX.
However, whether or not a takeover bid will be made is completely open, they
added.
Previously, Der Spiegel reported without citing sources that the company is
considering acquiring or taking a stake in Sprint Nextel to expand its foothold
in the U.S. market.
Spokesmen of both companies declined to comment.
The report said a takeover has become attractive due to the current low
market capitalization of Sprint, put at $22 billion, and the weakness of the
U.S. dollar against the euro.
Deutsche Telekom is the parent of T-Mobile, the fourth-largest mobile
operator in the United States, while Sprint Nextel is the third-largest
operator.
christoph.steitz@thomsonreuters.com
mur/cs1/vlb
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