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Deutsche Telekom seeks breakup fee of over $1 billion on T-Mobile-Sprint deal: WSJ

The T-Mobile store sign is seen in Broomfield, Colorado February 25, 2014. REUTERS/Rick Wilking
The T-Mobile store sign is seen in Broomfield, Colorado February 25, 2014. REUTERS/Rick Wilking

(Reuters) - Deutsche Telekom AG wants to be compensated by Sprint Corp in the event its planned merger with the German firm's T-Mobile US Inc does not win regulatory approval, the Wall Street Journal reported, citing people familiar with the matter.

Deutsche Telekom AG , which currently owns 67 percent of T-Mobile, expects a breakup fee of more than $1 billion, according to the people cited in the report.

The company also wants T-mobile's brand and some of its management team to be retained after a merger, the Journal cited the sources as saying.

Reuters reported on May 1 that Sprint is facing a battle with U.S. regulators who oppose consolidation in the wireless market on the basis it would inhibit competition. The company is aware it may have to give up some of its spectrum holdings to win over critics, according to a Reuters source.

T-Mobile and Deutsche Telekom could not be reached immediately for comment outside of normal business hours.

(Reporting By Abinaya Vijayaraghavan; Editing by Ken Wills)

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