Deutsche Telekom confirms in talks with MetroPCS

FRANKFURT, Oct 2 (Reuters) - Deutsche Telekom on Tuesday confirmed it is in talks with smaller peer MetroPCS

over a combination of their operations in the United States.

In a regulatory filing, Deutsche Telekom said the aim of the combination would be to operate its subsidiary T-Mobile USA and MetroPCS "within one company in which Deutsche Telekom would hold the majority of shares."

The company added that significant issues have not yet been finalized, contracts have not yet been signed, and the conclusion of the transaction is still not certain.

The Board of Management and Supervisory Board of Deutsche Telekom have therefore not yet taken the resolutions necessary for such a transaction, Deutsche Telekom said.

Earlier on Tuesday, Reuters reported on advance talks between the two companies.

Deutsche Telekom tried to sell its U.S. business T-Mobile USA, once a strong growth engine, to AT&T for $39 billion but fierce regulatory opposition scuppered the deal, leaving the German company with a $6 billion breakup package.

(Reporting By Harro Ten Wolde and Edward Taylor)

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