T-Mobile and Sprint to Merge? The Stock Market Says Yes

Deutsche Telekom AG (DTEGY)  shares rose firmly in Frankfurt Monday amid speculation of a potential merger between its majority-owned T-Mobile US (TMUS) - Get Reportunit with wireless rival Sprint  (S) - Get Report.

Sprint's parent Softbank Group (SFTBY)  is planning to approach Deutsche Telekom about a merger between the two carriers and is prepared to give up control over a combined entity, Reuters reported Friday, citing sources familiar with the matter.

Deutsche Telekom shares rose more than 2.5% by 08:30 GMT to change €16.22, extending their three month gain past 12.5%. SoftBank shares closed 3.18% higher in Tokyo Monday at ¥8,789 each.