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Deutsche Telekom says any U.S. merger has to create real value

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Deutsche Telekom says any U.S. merger has to create real value

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FRANKFURT (Reuters) – Any merger that Deutsche Telekom <DTEGn.DE> may enter into in the United States must deliver real value in terms of synergies, its finance chief said when asked why it was proving so difficult to strike a deal with Sprint <S.N> or another party. “It depends on how sure you can be to really get out the synergies you have on a piece of paper,” Thomas Dannenfeldt told analysts on a call after Europe’s biggest telecoms provider reported second-quarter earnings on Thursday. Fourth-biggest U.S. wireless carrier Sprint said on Tuesday an announcement on merger talks should come in the “near future”. It has been exploring a merger with Deutsche Telekom’s T-Mobile US <TMUS.O> as well as with cable provider Charter Communications <CHTR.O>. Deutsche Telekom on Thursday repeatedly refused to comment on the current situation. But Dannenfeldt said in-market consolidation did in general offer opportunities, and a mobile-to-mobile merger was the easiest way of creating synergies. T-Mobile US has previously tried and failed to merge with U.S. network operators AT&T <T.N> and Sprint. It merged with Texas-based MetroPCS in 2014. Deutsche Telekom has wavered at times over the years about its commitment to remaining in the U.S. market. T-Mobile US is now its primary growth and profit driver.

(Reporting by Georgina Prodhan; Editing by Arno Schuetze)
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