VoiceStream reportedly is negotiating to acquire

AT&T Wireless

(AWE)

in a transaction that would create the second-biggest wireless carrier in the U.S.

VoiceStream, which is owned by

Deutsche Telekom

(DT) - Get Report

, would be the dominant shareholder in the combined firm. The talks are in a preliminary stage and might not result in an agreement,

The Wall Street Journal

reported.

A merged VoiceStream and AT&T Wireless would have more than 25 million subscribers -- trailing only the 29.4 million of

Verizon's

(VZ) - Get Report

Verizon Wireless. The combined company would have annual revenue of over $25 billion. AT&T Wireless had $13.6 billion in revenue last year.