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Thursday, August 7, 2014

Deutsche Telekom rejects Iliad bid, leaves door open to US sale, (NYSE: TMUS)

Deutsche Telekom rejected an offer from Iliad for its mobile business in the United States and said regulators there should help smaller players compete against bigger rivals if they are not allowed to merge.Deutsche Telekom makes about a third of its sales and a fifth of core profits in the United States, but believes its subsidiary T-Mobile US lacks critical mass, signal frequencies and capital to compete with leaders AT&T and Verizon .The German company has tried to sell the business twice since late 2011, only to be thwarted by the industry regulators' desire to keep four carriers in the market. Deutsche Telekom shares fell as much as 5 percent on Wednesday after the latest plan to sell T-Mobile US to Sprint foundered.Deutsche Telekom Chief Executive Tim Hoettges still left the door open to an eventual U.S. exit.

Shares of TMUS fell by 8.4% or $-2.85/share to $31.06. In the past year, the shares have traded as low as $22.95 and as high as $35.50. On average, 4372060 shares of TMUS exchange hands on a given day and today's volume is recorded at 17733466.