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 Post subject: Reports say T-Mobile may do IPO
PostPosted: Sat Feb 06, 2010 1:25 am 
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2-5-10T-Mobile USA could be sold off to the public

Deutsche Telekom (DT) has not been having a great year outside of its home country of Germany. It decided that its English subsidiary, T-Mobile UK, was underperforming so much that it should merged off with another UK operator - a decision that is still going through legal wrangling. And now it has announced that its America operation may be put up for sale to the public through an IPO.

T-Mobile USA has been losing profits and subscribers - and according to the Wall Street Journal, DT has been in talks with several banks to underwrite the spin-out.

Up until now the most often circulated rumour was some kind of merger with Sprint in the USA… maybe the painful merger process currently happening in the UK has put them off that. Either way, this could lead to T-Mobile USA spinning out as a separated business entity to DT, with its own bank balance and risks. And with a much fatter wallet for DT.

2-5-10T-Mobile USA's Owner Weighs IPO

The owner of T-Mobile USA, the fourth-largest U.S. wireless provider, is exploring an initial public offering or spinoff of the business

T-Mobile's parent, German giant Deutsche Telekom AG, has recently held discussions with a number of banks, including Deutsche Bank AG, about underwriting an IPO for the unit, according to people familiar with the matter.

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