<With a capitalisation of some $200 billion, the Post said that Hedberg ``boasted'' Deutsche
Telekom could snap up any of the
largest carriers, from AT&T Corp (NYSE:T - news) to SBC Communications Inc.,
BellSouth Corp (NYSE:BLS - news). and
WorldCom.>
German phone carrier seeks U.S. firm-report
WASHINGTON, June 24 (Reuters) - German telephone giant Deutsche Telekom AG wants
to enter the lucrative U.S. market via the purchase of a major U.S. firm and may try to buy
Sprint Corp if its merger plans fail with WorldCom, the Washington Post reported on Saturday.
Quoting a senior executive from the German national carrier, the Washington Post said
Deutsche Telekom wanted to find an American enterprise with a substantial Internet
transmission and telephone network.
Company board member, Jeffrey Hedberg, told the Post Deutsche Telekom also aimed to buy
into the fast-growing U.S. market for wireless communications.
Hedberg declined to say whether Deutsche Telekom would make a bid for Sprint Corp (NYSE:FON - news) if its $120 billion
merger fell through with WorldCom Inc (NasdaqNM:WCOM - news)., but the Post said he did nothing to dispel the impression
that his company would be a natural buyer if Sprint went back on the market.
``Sprint would be interesting,'' Hedberg told the Post. ``It's well managed. It's a good company ... They have the capabilities to
provide services to multinational customers,'' he added.
The U.S. long-distance telephone companies were in intense negotiations on Friday with U.S. regulators over a proposal to sell
Sprint's Internet and long-distance telephone businesses and brand names as a condition for merger approval.
Regulators fear the combination of the U.S. long-distance telephone companies would trample competition in the long-distance,
Internet and corporate communications markets.
The European Commission is due to rule on July 5 on whether the merger can go through in its present form.
If regulators block the deal, analysts expect the companies to become prime takeover targets for large foreign carriers, such as
Deutsche Telekom and France Telecom.
With a capitalisation of some $200 billion, the Post said that Hedberg ``boasted'' Deutsche Telekom could snap up any of the
largest carriers, from AT&T Corp (NYSE:T - news) to SBC Communications Inc., BellSouth Corp (NYSE:BLS - news). and
WorldCom.
Hedberg stressed a joint venture would not, under any circumstances, be considered as a means of crafting an offering for
multinationals. Deutsche Telekom wanted full control of whatever course it pursued, the Post said.
``We've learned,: he said. ''Loose alliances do not work." |
