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Telekom eyes U.S. deals?
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July 28, 1999: 12:38 p.m. ET
German company reportedly mulls Qwest, Sprint, One2One takeovers
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LONDON (CNNfn) - Deutsche Telekom is looking at acquiring three top telecommunications companies -- Qwest Communications, Sprint and the British cellular provider One2One -- worth nearly $105 billion, according to a press report Wednesday.
Citing a "high-ranking Telekom manager," the German business daily Handelsblatt said talks with the two U.S. companies are under way, although it hasn't been decided which would be bought first.
The report also rekindled speculation Telekom is engaged in talks to buy a 10 percent stake in America Online (AOL), saying the chief executive officers of both companies have met several times in recent weeks.
The article said talks with One2One owners Cable & Wireless (CW.) and US West (USW) are close to being finalized, with a price of 7.5 billion pounds ($11.933 billion) likely. US West recently agreed to merge with Qwest.
At current market prices, a 10 percent stake In AOL would be worth about $10.8 billion. The Dulles, Va.-based company said Wednesday it wouldn't comment on market speculation.
Sprint (FON) is valued at more than $44 billion, Qwest combined with proposed merger partner US West at more than $58 billion, and One2One could fetch $12 billion.
Analysts were skeptical about the report, although one told CNNfn.com that a tie with Qwest would be the most likely of the U.S.-related deals, given that "Deutsche has not had a great relationship with Sprint," one of the co-owners of the Global One joint venture with former ally France Telecom.
A Sprint spokesman said the company has warm relations with both its Global One partners. France Telecom and Deutsche appear to have fallen out irretrievably after Telekom's failed bid to acquire Telecom Italia, leaving the Global One venture in limbo.
"Deutsche Telekom has teams of people looking at all sorts of opportunities, and some day that will all come together," said the analyst, who didn't wish to be identified.
If Qwest achieves its acquisition of US West "Deutsche would be more interested," the analyst added.
Officials at Qwest, US West and Sprint said they would not comment on speculation, and Deutsche Telekom couldn't immediately be reached for comment.
Shares of America Online climbed 2-1/2 to 100-11/16; Qwest rose 7/8 to 31, US West added 3/4 to 58-5/16 and Sprint rose 5/8 to 51-1/8 Wednesday afternoon in U.S. trading. 
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