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UPDATE 1-Deutsche Telekom, Sprint jump on U.S. merger talk

Published 03/08/2011, 09:26 AM
Updated 03/08/2011, 09:28 AM

* Deutsche Telekom up 4.1 pct, Sprint seen opening higher

* Traders point to rumours of merger talk

(Adds details, background)

FRANKFURT, March 8 (Reuters) - Shares in Deutsche Telekom and Sprint Nextel jumped on renewed talk the two companies may be in discussions to combine their operations in the United States.

Deutsche Telekom stock gained 4.1 percent to 10.02 euros by 1415 GMT, and Sprint was indicated to open higher.

Chief Financial Officer Timotheus Hoettges in an e-mailed statement on Tuesday declined to comment on market rumours but reiterated Deutsche Telekom was open to all options in the United States and under no pressure to make a move.

Two weeks ago, Deutsche Telekom's Chief Executive Rene Obermann told Reuters Insider TV he ruled out buying Sprint Nextel but said the company was looking at partnerships to mitigate future spectrum needs.

In addition, Obermann has repeatedly said the company would not make any "multi-billion" acquisitions.

T-Mobile USA has said it is considering expanding its access to wireless airwaves through a partnership with companies such as Clearwire or Harbinger-backed start-up LightSquared.

It is also the main bidder left in a spectrum auction Clearwire is holding, sources have told Reuters.

Deutsche Telekom had looked closely at Sprint in 2008, a source close to the company told Reuters at the time, since the U.S. company announced a huge goodwill writeoff in February of that year, but had backed away from any deal.

(Reporting by Peter Maushagen)

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