Deutsche Telekom Seeks to Build No. 1 Carrier With T-Mobile Deal

Deutsche Telekom AG is discussing a potential combination with its American arm T-Mobile US Inc., people familiar with the matter said, a move that would create the world’s biggest phone company and set a record for public M&A.

Deutsche Telekom, which already holds a 53% stake in the US business, is in early-stage talks about the creation of a holding company that would make a stock bid for both companies’ shares, the people said, asking not to be identified because the information is private.

The new company would have a single, simplified corporate layer that would control Deutsche Telekom ...