Deals
Deutsche Telekom Buys Time for T-Mobile From Breakup Package
This article is for subscribers only.
Deutsche Telekom AG, whose proposed $39 billion sale of T-Mobile USA to AT&T Inc. collapsed yesterday, has about a year before it needs to start the search for another partner amid rising costs for improving its network.
A breakup package that includes the payment of $3 billion in cash to Deutsche Telekom will only cover T-Mobile’s expenses for 12 to 24 months, said Wolfgang Specht, an analyst at WestLB AG in Dusseldorf. If T-Mobile doesn’t find a new partner after that time, it risks failing to generate enough operating cash flow to cover capital spending, he said.