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Telekom seeks VoiceStream
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July 10, 2000: 10:07 p.m. ET
Reports: Deutsche Telekom readies $30 billion for mobile phone company
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NEW YORK (CNNfn) - Deutsche Telekom AG continues to be on the wireless prowl, offering more than $30 billion for mobile phone company VoiceStream Wireless, according to published reports.
Based on a closing price of 124-15/16 Monday, a complete takeover of the company would cost more than $30 billion. According to Tuesday's edition of the Financial Times, which first reported the deal, France Telecom is also interested in VoiceStream (VSTR: Research, Estimates).
But Deutsche, Europe's top telecom company and the world's third-largest carrier, is reportedly in the lead for the Bellevue, Wash.-based company, with a deal for all shares or a majority stake.
Shares of VoiceStream jumped 10-1/16, or 8 percent, to 135 in after-hours trading after news of the deal broke.
The deal may also be ahead of a much larger deal for Sprint, after the regulatory difficulties of its proposed merger with WorldCom (WCOM: Research, Estimates). If the deal collapses, Deutsche could launch a $100 billion bid for Sprint.
Deutsche Telekom, with a war chest of nearly $100 billion, has made it clear that it was on the hunt to acquire a United States telecom company.
However, a Sprint-Deutsche Telekom tie-up could face problems of its own. On Friday, 30 U.S. senators signaled their opposition to a Sprint-Telekom merger, calling any bid by a company owned by another government contrary to U.S. law. The German government owns 59 percent of Deutsche Telekom.
In 1999 VoiceStream had sales of more than $475 million, but lost more than $454 million. Officials at VoiceStream did not return calls requesting comment. Deutsche Telekom officials could not be reached. 
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