By Philipp Halstrick and Arno Schuetze
FRANKFURT (Reuters) - The German government is considering selling shares in Deutsche Telekom
Germany has a 31.9-percent stake in the former monopoly, worth about 16 billion euros (13 billion pounds), with 17.4 percent of that held by state development bank KfW
The sources told Reuters that KfW has invited banks to make proposals for a share placement.
"Now is the perfect time to place some Deutsche Telekom shares," a third source said.
"Valuations are high, elections are done, MetroPCS deal is done. So all set," the source said, referring to MetroPCS's merger with Deutsche Telekom's T-Mobile.
Shares in Deutsche Telekom turned negative on the news, trading 0.8 percent lower at 11.41 euros by 1529 GMT and underperforming a 0.6 percent decline for the STOXX Europe 600 Telecommunications index <.SXKP>.
The two sources said Berlin's preparations were at an early stage, and it was not yet clear whether or when a placement could take place. One of them said a sale was more likely to come by mid-year than within the coming weeks.
Deutsche Telekom, KfW and the finance ministry declined to comment.
To sell any shares in Deutsche Telekom, a number of steps would still need to be taken at the finance ministry that oversees the holding, and ministerial as well as coalition approval would be needed.
(Additional reporting by Matthias Sobolewski, Harro ten Wolde and Peter Maushagen; Editing by Maria Sheahan and Louise Ireland)