Shares in Sprint Nextel soared in Frankfurt on Monday, boosted by a newspaper report that Deutsche Telekom is mulling a bid for the company.

Even though strategically it would be the best move forward since quite some time for (Deutsche Telekom), it will weigh on the share price firstly because of that potential capital raising effort but secondly because of the time span needed to return the U.S. peer to profitability, Heino Ruland, strategist at Ruland Research wrote in a note. (Reporting by Christoph Steitz)