T-mobile's merger talks with deutsche telekom send stocks plummeting

Global telecom giants T-Mobile and its majority owner Deutsche Telekom are reportedly in merger talks, which has sent shockwaves through the stock market.

Deal could create world's largest telecom company

Should the deal go through, it would create a massive telecom powerhouse, potentially surpassing China Mobile to become the world's largest carrier based on valuation.

However, T-Mobile shares have taken a hit, plummeting over $5 or 2.84% to $189.85 in pre-market trading today amid growing concerns about the likelihood and complexity of the merger.

Deutsche Telekom also saw its shares fall over 3% in Frankfurt trading, with investors fretting over the daunting costs and regulatory hurdles that such a huge deal would entail.

One potential solution could be the formation of a new holding company to buy shares of both T-Mobile and Deutsche Telekom, but even this may not be enough to sway investors who remain skeptical about the deal's prospects.

T-Mobile insiders have been selling the company's stock in droves since earlier this year, dumping nearly $151 million worth of shares at prices now much higher than the current price.