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Deutsche Telekom is reportedly exploring a full merger with T-Mobile US, in a transaction that could mark the largest public M&A deal in history, as per sources. Currently, Deutsche Telekom holds a roughly 53% stake in T-Mobile US. The potential combination would create a massive powerhouse with a market cap exceeding that of China Mobile Ltd which is valued at ~$235bn. As per a report, the German telecom giant is considering creating a new holding company to launch a bid for the shares of both Deutsche Telekom and T-Mobile. Discussions are said to be in the preliminary stages and may face significant regulatory and political hurdles. Sources noted that both companies may need to commit to maintaining a major base in Germany and increasing US infrastructure investments in order to secure approvals. If finalized, the new entity would likely seek a dual listing on US and European exchanges.
T-Mobile’s bonds were trading stable with its 2.625% 2029s at 95.5, yielding 4.34%. Similarly, Deutshce Telekom’s 8.75% 2030s was trading stable at 115.4, yielding 4.63%.
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