To: Spark who wrote (14456 ) 8/27/2000 6:13:59 PM From: Mike Perras Read Replies (1) | Respond to of 19297 Spark .. PTEL might be worth a look early Monday .. Sunday August 27 4:30 PM ET VoiceStream, Powertel Said Near Deal NEW YORK (AP) - VoiceStream Wireless Corp. (NasdaqNM:VSTR - news), the nation's eighth largest mobile telephone carrier, is close to an agreement to buy cell phone company Powertel Inc. (NasdaqNM:PTEL - news) for roughly $5.8 billion in stock, according to reports on Sunday. Citing anonymous sources, The Wall Street Journal and the Financial Times, reported a deal could be announced as early as Monday. VoiceStream, Bellevue, Wash., which last month agreed to be acquired for $46 billion by Europe's biggest telecommunication company, Deutsche Telekom AG (NYSE:DT - news), has been seeking to expand its base of U.S. wireless customers. West Point, Ga.-based Powertel has about 720,000 subscribers as well as licenses in 12 states covering 25 million potential subscribers, the Journal reported. Powertel's customer base is in the southeastern United States, where VoiceStream is currently weak. Based on Friday's closing price on the Nasdaq Stock Market, Powertel has a market value of about $2.7 billion, less than half of what VoiceStream is reportedly offering to pay. Bonn-based Deutsche Telekom agreed to buy VoiceStream to gain an international reach to 375 million customers and a toehold with one of the few U.S. telecom companies using the GSM standard, the most popular digital cellular standard in the world. VoiceStream has the broadest reach of any GSM company in the United States, reaching 2.3 million customers throughout the nation. Like VoiceStream, Powertel also uses the GSM standard. VoiceStream's purchase of Powertel will go ahead even if its deal with Deutsche Telekom falls through, the Times reported. In Washington, a group of 30 senators has urged the Federal Communications Commission to consider national security implications of any foreign acquisition of a U.S. telecommunications firm. The German government has a significant stake in Deutsche Telekom.