Telekom gets last OK to buy VoiceStream

German company also purchasing Powertel

May 02, 2001|By BLOOMBERG NEWS

WASHINGTON - Deutsche Telekom AG said yesterday that it has won approval from the U.S. Committee on Foreign Investment for its $34 billion takeover of VoiceStream Wireless Corp., the last regulatory obstacle before closing the purchase.

Europe's largest phone company, which won Federal Communications Commission approval last week, reiterated that it expects to complete the purchase by the end of the month.

The foreign investment committee also approved Deutsche Telekom's purchase of Powertel Inc. Together, the acquisitions give the former German monopoly 5.4 million U.S. wireless subscribers and a nationwide network.

Deutsche Telekom had said that the committee would take its information from the Department of Justice and the Federal Bureau of Investigation concerning unspecified security issues. The FBI didn't oppose the combination in a January resolution.

Shares of VoiceStream rose $1.60, or 1.5 percent, to $106.60, valuing the seventh-largest U.S. mobile-phone company at more than $27.5 billion. Deutsche Telekom's American depositary shares, each representing one ordinary share, rose 17 cents to $25.88.

The German company will pay $30 in cash and 3.2 of its shares for each VoiceStream share.

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