Rumours abound in the press today of a sale or merger being on the cards for T-Mobile. Reports, which seem to have originated with the Financial Times late last week, suggest that Deutsche Telekom, which owns T-Mobile UK, is under pressure from its shareholders, which include the German government, to make a quick decision on whether to offload the underperforming division.
T-Mobile UK is the one of the smallest of the mobile phone and mobile broadband providers in the UK - only 3 is smaller - in what is a fiercely competitive market-place, and has been reporting less than spectacular profits recently, resulting in Deutsche Telekom issuing a profit warning last month. Now it is suggested by the FT’s sources, listed only as ‘people familiar with the shareholders’, that its parent group is coming under pressure to sell, or alternatively to merge with another of the UK’s mobile internet providers - with speculation listing 3 and Orange as likely.
The FT’s sources also suggest that the idea of Deutsche Telekom getting out of the UK mobile market was mooted six months ago, but the decision was held at that stage. Now, it seems, the decision has become critical and must be made as soon as possible. Last month René Obermann, Telekom chief executive, said that he would appoint new management to put the UK business back on an even keel, but he did not exclude any strategic options beyond that. So far, however, T-Mobile has yet to comment.
Sorry, the comment form is closed at this time.