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Tuesday, March 8, 2011

Deutsche Telekom keeps options open for U.S., (NYSE: S)

Shares in Deutsche Telekom AG (DTEGn.DE) and Sprint Nextel Corp (S.N) jumped after a report that they are in merger talks, although such a deal could be fraught with difficulties. Deutsche Telekom closed up 3.95 percent at 10 euros and Sprint rose 3.5 percent to $4.64 after Bloomberg reported the two had held on and off talks about a potential sale of Deutsche Telekom's T-Mobile USA unit to No. 3 U.S. mobile service Sprint in exchange for a stake in the new company. Deutsche Telekom Chief Financial Officer Timotheus Hoettges said in an email that the company is open to all options in the United States, where it has said it will need more wireless spectrum to support future data services. T-Mobile USA and Sprint both declined comment on the story.

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