T-Mobile's U.S. management informed Deutsche Telekom that they are no longer in favor of a proposed $300 billion merger between the two companies, Semafor reported Friday, citing people familiar with the matter.
The executives told Deutsche Telekom their decision reflects concerns raised by shareholders and potential regulatory hurdles, the report said. Several of T-Mobile's non-controlling shareholders, including large institutional investors, communicated to the company that they would oppose a merger with Deutsche Telekom.
According to the Semafor account, T-Mobile executives also received indications from government officials that U.S. regulators would likely require a guarantee ensuring that T-Mobile's U.S. revenue would either be reinvested in the United States or otherwise remain in the country as a condition for approval.
Market moves followed the news. T-Mobile shares were trading roughly 0.9% lower after the report. Deutsche Telekom American depositary receipts were recovering some earlier losses but remained down about 0.9% for the day.
Deutsche Telekom is the controlling shareholder of T-Mobile, a structural fact noted in the reporting.
Context in the report is limited to the information described above. The account attributes the change in T-Mobile's stance to shareholder pressure and the prospect of regulatory conditions tied to the handling of U.S. revenue, without providing additional detail on negotiations, timelines, or formal filings.