NEW YORK-Deutsche Telekom AG has proposed merging its VoiceStream Wireless Corp. operations with Cingular Wireless L.L.C., which is owned by BellSouth Corp. and SBC Communications Inc., according to a report in The Wall Street Journal.
The newspaper said unnamed sources close to both companies confirmed talks are at a very early stage and that the merged operations would leave Cingular as the controlling shareholder. DT originally purchased VoiceStream last year for around $30 billion and is looking at ways to reduce its more than $60 billion debt load. Analysts have valued VoiceStream at between $10 billion and $15 billion.
This latest industry consolidation rumor comes on the heels of rumored talks between Cingular and AT&T Wireless Services Inc. and between AT&T Wireless and VoiceStream.
All the companies involved have declined to comment on the rumors, though DT’s recently hired chief executive officer said the company would be interested in scaling back some of its international operations in an attempt to cut costs.
