<div><p>NEW YORK (Reuters) - Deutsche Telekom AG <DTEGn.DE> is considering an initial public offering or spinoff of its U.S. wireless service T-Mobile USA, the Wall Street Journal reported.</p><p>Citing people familiar with the matter, the Journal said Deutsche Telekom recently had talks with potential underwriters, including Deutsche Bank AG and expects to make a decision in the coming months.</p><p>The German telecommunications company wants to placate shareholders unhappy with its performance, according to the online report from the Journal, which said an IPO could help fund T-Mobile USA's network build-out.</p><p>T-Mobile USA is a distant fourth in the U.S. mobile market, behind Verizon Wireless, AT&T Inc <T.N> and Sprint Nextel Corp <S.N>. Verizon Wireless is a joint venture between Verizon Communications Inc <VZ.N> and Vodafone Group Plc <VOD.L>.</p><p>Because T-Mobile USA has been losing customers, to larger as well as smaller rivals, there was a rash of speculation last year about its future, with possibilities ranging from a merger with Sprint, Leap Wireless International Inc <LEAP.O> or MetroPCS Communications Inc <PCS.N>, to a network partnership with Clearwire Corp <CLWR.O>.</p><p>Representatives of Deutsche Telekom and T-Mobile USA declined to comment.</p><p>Based on estimated earnings before interest taxes depreciations and amortization of $6 billion, T-Mobile USA would have an equity value around $20 billion and could take on $12 billion in debt and maintain an investment-grade rating, the Journal said, citing people familiar with the matter.</p><p>It said the most likely scenario, if Deutsche Telekom moves forward, is to sell about a 20 percent stake and retain the rest.</p><p>(Reporting by Sinead Carew; editing by Andre Grenon)</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68473398&bid=informcom" /></div><div id="copyright"><div>

Copyright 2010  <a href="http://www.reuters.com/finance">Reuters US Online Report Business News</a></div></div>