When I heard
a rumor early this week that T-Mobile plans to sell its US arm , the very first thought that came was skeptical by nature.
Why would they do that ?
Deutsche Telekom to sell the most healthier part of their business? No way, I said to myself, just like many analysts and investors.
According to their 1st quarter, the growth rate was 40 %.
The market share of 10 % in US, very healthy subscriber base, and positioning in the youth market. These are all strong DT fundamental in US.
So, the cited reasons in the rumor were that Deutsche Telekom will face huge bill for upgrading its network to 3G ( the investment could top 10 billion ) , so that the released fonds will be used for buying european assets. Sort of strategically rewiring.
The expections are, according to this very same rumors , of at least $ 30 billion for the eventual selling price.
But I doubt german institutional investors would be happy with above mentioned price. It 's still less when having in mind DT entry on US markets with the deal of buying Voicestream at the high of dot com inflated market prices.
Satisfied or not, the financial reality sets market value for the asset price which could be lower in the future.
The question addressed to the management of DT could be are they in the know of something that markets haven't yet figure out ?
If so, there could be strategic deal to get rid of that asset while it's still can obtain such a high price.
But, at least for now, there's no buyer for T-mobile US arm. Vodafon , as potential buyer, declined immediatly such a rumor.