AT&T to Buy Deutsche Telekom’s T-Mobile USA for $39 Billion in Cash, Stock

The deal would allow AT&T, now the second-largest U.S. wireless operator, to add about 34 million customers and surpass Verizon Wireless. The acquisition, the largest in the wireless industry since 2004, may face government scrutiny because it combines the second- and fourth-largest wireless providers, reducing consumer choice. Regulatory approval may take a year, Dallas-based AT&T said.

“This is a long process from the regulatory perspective and nothing is guaranteed,” said Chris Larsen, a Piper Jaffray & Co. analyst, in an interview. “For these carriers, there’s going to be bigger savings on their networks by joining up.”

Deutsche Telekom rose more than 16 percent in Frankfurt, the biggest intraday gain since it began trading in November 1996. It gained 15 percent to 11.01 euros at 9:09 a.m. AT&T rose as much 1.5 percent in German trading to the equivalent of $28.19. It added 20 cents to $27.94 in New York Stock Exchange composite trading on March 18.

Sprint had held talks with Deutsche Telekom about acquiring T-Mobile, people with knowledge of the matter said this month. The companies hadn’t been able to agree on the valuation of T- Mobile, the people said.