Deutsche Telekom Loses $12B Even With New Bid

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Deutsche Telekom AG may not get a better deal fro T-Mobile USA as it did with AT&T Inc. In March AT&T agreed in March to pay $39 billion for Deutsche Telekom’s U.S. mobile-phone unit, a takeover that the Justice Department yesterday sued to block. The deal, struck at 28.8 times profit, gave T-Mobile USA the highest valuation of any wireless carrier outside China. With T-Mobile USA now mired in its biggest profit slump in almost a decade, a sale at the same multiple AT&T was willing to pay would generate $12 billion less for Deutsche Telekom,While AT&T said it plans to fight the lawsuit, Deutsche Telekom risks getting saddled with a mobile-phone business that had profit declines in four of the past five years and lost more than a half-million subscribers in 2011. Turning to Sprint Nextel Corp. (S), which analysts say will lose money for a fifth straight year.