T-Mobile nears agreement on US merger

Germany’s Deutsche Telekom is reportedly moving closer towards agreeing a deal to merge its US cellular subsidiary, VoiceStream Wireless, with the second largest US operator, Cingular Wireless. According to the Financial Times, the two companies are close to finalising the details of the merger, including the size of the stakes each will take in the new company. It is thought, however, that one of the main sticking points is that Deutsche Telekom is seeking greater control of the merged entity. The operator is holding out for improved terms which will prevent its stake being diluted should further shares be issued.