T-Mobile, Deutsche Telekom merger stalls
T-Mobile executives have told their controlling shareholder that they no longer support the $300 billion merger.
Recent discussions between T-Mobile and Deutsche Telekom have revealed that the proposed $300 billion merger between the two companies has encountered significant obstacles. T-Mobile's US executives have notified their controlling shareholder that they no longer support the merger, primarily due to concerns raised by both shareholders and potential regulators.
The deal talks between T-Mobile and Deutsche Telekom began earlier this year, with plans to present a merger proposal to T-Mobile's non-controlling shareholders for approval. However, T-Mobile executives now express uncertainty regarding the likelihood of securing the necessary shareholder approval.
Moreover, government officials have warned T-Mobile executives that regulatory bodies, including the Committee on Foreign Investment in the United States (CFIUS), may require assurances that a substantial portion of T-Mobile's US revenue would be reinvested within the country. T-Mobile generated adjusted free cash flow of approximately $18 billion in the previous year and had paid over $2 billion in dividends to Deutsche Telekom alone.
A representative of T-Mobile declined to comment on the matter, while representatives for Deutsche Telekom and the Treasury Department did not provide any response to inquiries for comment.
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