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T-Mobile USA Reportedly May Be Spun Off

Deutsche Telekom is weighing an initial public offering or spinoff of wireless provider T-Mobile USA, a report says.

BONN, Germany (

TheStreet

) --

Deutsche Telekom

(DT) - Get Report

is weighing an initial public offering or spinoff of

T-Mobile USA

, the fourth-largest U.S. wireless provider, a report says.

Deutsche Telekom recently has held discussions with several banks, including

Deutsche Bank

, about underwriting an IPO for the unit, sources told the

Wall Street Journal

.

According to these people, the most likely scenario for Deutsche Telecom would be to sell about 20% of the division to investors and retain the rest.

Other options under consideration include a partial spinoff of the business. A merger with a U.S. rival is also on the table though less likely, the

Journal's

sources added, since it would face regulatory and technological hurdles.

A spokesman for Deutsche Telekom declined to comment for the newspaper.

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Deutsche Telekom historically has been risk averse and may ultimately scrap the plans for an IPO, the sources said. Still, there is a feeling "the status quo isn't working for T-Mobile," said one source, the

Journal

reports.

T-Mobile's market share in the U.S. is about 14%, below rivals

AT&T

(T) - Get Report

,

Verizon Wireless

(VZ) - Get Report

and

Sprint

(S) - Get Report

, the

Journal

notes.

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