Sprint Nextel May Get Takeover Bid: Report

Shares of Sprint Nextel (S Quote) surged Monday on a report that Deutsche Telekom (DT Quote) was close to bidding for the flagging wireless carrier.

The Wall Street Journal reported that a bid for Sprint from Deutsche Telekom was at a preliminary stage and management could walk away before making an offer, according to people close to the deal. If Deutsche Telekom were to acquire Sprint, which has a market capitalization of $22 billion, it would propel its T-Mobile unit to the top wireless position in the U.S.

Sprint was lately up 60 cents, or 7.6%, to $8.49, while Deutsche Telekom was off 1.1% at $17.91. Rival AT&T (T Quote) was flat in early trading, and Verizon (VZ Quote) was off 0.1%.

Rumors of a Sprint buyout first surfaced in March after a CNBC contributor said Sprint hired Morgan Stanley to explore potential deals and takeovers. At the time, Sprint spokesman James Fisher said it was company policy not to comment on rumors or speculation, and Morgan Stanley also declined to comment.