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DT open to T-Mobile deal, reportedly skeptical Sprint bid will succeed

  • "I don’t want to insist on [U.S. mobile] consolidation, but I don’t want to rule it out," says Deutsche Telekom (DTEGY, DTEGF) CEO Tim Hoettges.
  • The remarks come after Hoettges reportedly told DT's board he considers a sale of 67%-owned T-Mobile USA (TMUS -1.8%) unlikely in the near-term, given regulatory opposition to a bid from Sprint (S -3.6%) and parent SoftBank (SFTBF, SFTBY).
  • Citing T-Mobile USA's aggressive investments, DT now expects its 2015 free cash flow to only be up "slightly" from 2014 levels. The carrier previously forecast 2015 FCF to rise to €6B ($8.3B) after hitting €4.2B ($5.8B) in 2014.
  • Sources tell Bloomberg Hoettges is now "taking a long-term view in the U.S.," and is focused on converting more of T-Mobile's giant prepaid base into postpaid subs.
  • DT shares fell 3.6% in Frankfurt.  Both T-Mobile and Sprint are selling off in U.S. trading.
  • More on Sprint/T-Mobile
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Comments (5)
  • MSF INVESTMENTS
    , contributor
    Comments (4255) | Send Message
     
    You better believe Hoettges wants the merger to go through for him and his companies sake.

     

    "We don't need TMobile". = M Son

     

    Lahiem
    6 Mar, 02:29 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4255) | Send Message
     
    Is it me or is this guy going back and forth with his comments.........
    6 Mar, 02:41 PM Reply Like
  • joemarolla23
    , contributor
    Comments (48) | Send Message
     
    It seems to me that you are right.
    6 Mar, 02:44 PM Reply Like
  • JamesPond
    , contributor
    Comments (27) | Send Message
     
    I don't pay much attention to the sound bites bouncing off the alley walls, since there's so much more significant dealing going on that never reaches the street. Intuition says a deal will be done but it has no date. Also, the most important part of the sale/purchase is done the day before...just keep your ear to the rail and when the 'money train' sounds like its just around the bend...bust a move...or just buy low as often as you can afford.
    6 Mar, 08:44 PM Reply Like
  • MSF INVESTMENTS
    , contributor
    Comments (4255) | Send Message
     
    James, I agree, but I think investors are putting too much emphasis on the merger.

     

    Yes, it will be nice but Sprint doesn't need T Mobile.
    M Son is dealing with bigger boys out there.

     

    Lahiem
    7 Mar, 07:19 AM Reply Like
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