Shares of MetroPCS Communications spiked on speculation on Tuesday that it was nearing a deal with Deutsche Telekom.
MetroPCS, the cell phone service provider, has been posited as a potential deal target for awhile. Sprint Nextel moved to buy the company earlier this year. But proposed takeover fell apart after Sprint's board rejected the acquisition.
Now, new deal chatter has emerger. Last week, DealReporter said that MetroPCS had held talks with potential suitors.
On Tuesday, Bloomberg reported that Deutsche Telekom was close to securing a transaction, citing people familiar with the knowledge. Bloomberg noted that the German company would use such a transaction to bulk up T-Mobile USA, following the failed sale of the American subsidiary to AT&T.
After the latest report, shares of the cell phone service provider rose more than 21 percent to roughly $14.
Deutsche Telekom could have the firepower to make a deal with MetroPCS. Last week, T-Mob ile agreed to sell the rights to some of its towers to Crown Castle for $2.4 billion.
