Deutsche Telekom has announced it is in talks to make a major acquisition, purportedly of French telco giant Orange, according to German business daily Handelsblatt.
On Tuesday, Deutsche Telekom release a statement claiming it was eying up an acquisition, but did not disclose further details.
"Shareholders are advised that Telekom is in discussions in relation to a potential acquisition, which if successfully concluded, may have a material effect on the price of the company's securities."
Orange meanwhile has denied merger discussions with the German firm.
However, the Orange union, the French Confederation of Management - General Confederation of Executives, has come out against a potential merger, citing French sovereignty concerns.
Orange has substantial employee ownership, holding five per cent of equity and nine per cent of voting rights.
DT currently has a market cap of around €73bn, in comparison to Orange's €40bn, which would likely drastically reduce Orange employee influence.
Such a deal would also be subject to approval form the EU Commission in Brussels, which is traditionally against mega-mergers due to consumer interest grounds.
Currently, Deutsche Telekom shares are up 1.4 per cent, and Orange's are down 0.2 per cent on NYSE.
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