T-Mobile's US executives have informed Deutsche Telekom that they no longer support a proposed $300 billion merger between the two companies, Semafor reported Friday, citing people familiar with the matter. The executives pointed to shareholder concerns and potential regulatory issues as reasons for their opposition. Several of T-Mobile's non-controlling shareholders, including large institutional investors, told the US company they would oppose a merger with Deutsche Telekom. T-Mobile executives also received information from government officials indicating that US regulators would likely require a guarantee that T-Mobile's US revenue would be reinvested in the country or otherwise remain in the United States. T-Mobile shares were trading roughly 0.9% lower following the report, while Deutsche Telekom ADRs in the US were recouping some earlier losses but still traded 0.9% lower for the day.
Deutsche Telekom AGDeutsche Telekom's proposed merger faces opposition from T-Mobile US executives and shareholders, causing ADRs to fall.
T-Mobile US IncT-Mobile US executives oppose the merger due to shareholder concerns and regulatory issues, leading to a drop in shares.