Deutsche Telekom Shares Dip Amid T-Mobile Merger Speculation

Deutsche Telekom shares declined 1.5% Wednesday following reports of early-stage merger discussions with T-Mobile US. Sources confirmed the talks to Reuters. Deutsche Telekom, which already holds a 53% stake in T-Mobile US, declined to comment.

The potential combination, if approved, would form the world's largest wireless operator by market capitalization, with significant U.S. and European operations. T-Mobile US is valued at approximately $218 billion, while Deutsche Telekom is valued at about $166 billion.

Under the proposed structure, a new holding company would conduct a stock bid for both entities. The deal would require approval from Germany, a major shareholder in Deutsche Telekom. T-Mobile's stock has dropped 25% in the past year, and Deutsche Telekom's shares have fallen 10%.