Washington, DC - Deutsche
Telekom has made overtures to
acquire VoiceStream Wireless, a
highflying US cellular company,
sources say.
The German phone carrier is
one of a number of European and
US phone firms interested in buying
VoiceStream, which has
discreetly held talks with several
suitors in the past few months.
VoiceStream would fetch a
significant price. The Bellevue,
Washington, wireless company,
which operates licences throughout
the US has a market capitalisation
of about $27 billion, excluding
$2 billion of debt.
Deutsche Telekom`s interest
in VoiceStream could prompt
Japan`s NTT DoCoMo to redouble
its efforts to buy the cellular
company.
In May, NTT held discussions
to acquire a significant equity
stake in VoiceStream Wireless.
Deutsche`s overtures come as
the German telecommunications
firm is weighing making a bid for
Sprint, which recently was
blocked in its attempts to merge
with WorldCom.
Deutsche Telekom is also said
to be considering a bid for Qwest
Communications International, a
US telecommunications provider
Though the acquisition of
Sprint by Deutsche Telekom has
been much talked about, sources
say the German phone carrier
still has not made a final decision
regarding Sprint.
Indeed, these people say an
acquisition of Qwest is equally
likely. What is more, an acquisition
of Qwest by Deutsche would
not preclude the German carrier
from buying VoiceStream.
Deutsche Telekom, which is
59 percent owned by the German
government, has run into some
opposition in Washington, where
the idea of a Sprint acquisition
does not sit well with some members
of Congress.
VoiceStream would not be a
bad bet for Deutsche Telekom,
which is looking for a quick entry
into the US telecommunications
market.
Steven Yanis, of Bank of
America Securities, said: ``VoiceStream
has a nearly nationwide
wireless presence and a global
strategy that many if not all
large telecom companies are pursuing.
- The Wall Street Journal