Investing.com -- T-Mobile US Inc. shares surged 3% Tuesday afternoon following a Bloomberg report that Deutsche Telekom AG is considering a full combination with its American subsidiary.

Deutsche Telekom, which currently holds approximately 53% of T-Mobile, has been discussing the creation of a new holding company that would make a stock bid for shares of both companies, according to people familiar with the matter cited by Bloomberg.

The potential transaction would establish a single corporate group controlling operations of both Deutsche Telekom and T-Mobile, jointly owned by the two companies’ current investors. The combined entity may seek a listing in the US and a major European exchange, though details remain under development.

Discussions are at a preliminary stage and any transaction would require political support to proceed, the sources said. The companies have considered closer integration periodically over the years, and there is no certainty they will move forward this time.

If completed, the deal would create a multinational telecom group and rank as the largest-ever public M&A transaction.