Deutsche Telekom has paused plans for a full merger with its U.S. subsidiary, T-Mobile US, Bloomberg News reported. The company decided not to submit a formal offer for now, partly because of works council opposition and concerns about the German government’s influence. The plan is on hold, not abandoned, and could be revisited later.
Deutsche Telekom shares rose 2.8% in Thursday trading. The gain suggested investors welcomed the pause and were relieved of potential dilution from a massive all-stock deal to acquire the remaining stake in T-Mobile US. A full merger would have created the world’s largest telecommunications company.