Deutsche Telekom (DTEGY.PK) confirms it's in talks with MetroPCS (PCS +18.1%) about a merger...

|About: Deutsche Telekom AG ADR (DTEGY)|By:, SA News Editor

Deutsche Telekom (DTEGY.PK) confirms it's in talks with MetroPCS (PCS +18.1%) about a merger with its T-Mobile USA unit, but adds major issues haven't been finalized. DT's board is expected to vote on the deal tomorrow. Some of the fallout: 1) Sprint (S -4.5%) is now widely expected to go after Leap Wireless (LEAP +13.6%) and its valuable spectrum. 2) The odds of a MetroPCS/Clearwire wholesale deal are now lower, and concerns exist a Sprint/Leap deal will diminish Clearwire's (CLWR -7.1%) value to Sprint.