Deutsche Telekom hands over T-Mobile USA to AT&T

German telecommunications company Deutsche Telekom will take an approximately eight per cent stake in US telecommunications company AT&T as it simultaneously hands over 100 per cent ownership of T-Mobile USA to AT&T.

Under this agreement AT&T will pay $25bn (£15.4bn) in cash for T-Mobile USA, in addition to $14bn in AT&T shares.

AT&T has the right to increase the portion of the purchase price paid in cash by up to $4.2bn with a corresponding reduction in the stock component.

The closing of the transaction, which is valued at $39bn, is expected to be completed in first half of 2012.