Deutsche Telekom Surges on $39 Billion U.S. Sale to AT&T

Deutsche Telekom AG shares surged the most since 2008 after the company agreed to sell its U.S. wireless unit to AT&T Inc. for $39 billion, a price that exceeded analyst expectations and allows it to slash debt.

“T-Mobile USA’s standing within the Deutsche Telekom business had veered dramatically in recent years from the star performer to an isolated and increasingly problematic black sheep,” said Thomas Wehmeier, principal analyst at Informa Telecoms & Media. “The sale of the unit helps Deutsche Telekom to recoup the value sunk into the business.”