Germany sells Telekom stake to US investor
24 April 2006, FRANKFURT - Germany has sold a 4.5-per-cent stake in Deutsche Telekom, its main telecommunications company, to US financial investor Blackstone, KfW bank said in Frankfurt on Monday.
24 April 2006
FRANKFURT - Germany has sold a 4.5-per-cent stake in Deutsche Telekom, its main telecommunications company, to US financial investor Blackstone, KfW bank said in Frankfurt on Monday.
The shares, formerly owned by the German federal government, had been "parked" with KfW, the federal government's bank. About half of the former state telephone company is already in private hands after stock-market flotations in the 1990s.
Blackstone acquired the stake, comprising 191.7 million shares, for 2.68 billion euros (3.31 billion dollars) and has undertaken to hold them for at least two years, KfW said.
After the transaction, KfW holds just 17.3 per cent of Telekom. The bank said it was planning no further sales from that portfolio for the next 12 months. Berlin has transferred shares to KfW in the past to obtain income and help to reduce its budget deficit.
The German federal government still owns 15.2 per cent of Telekom, which provides fixed-line, mobile and internet services throughout Germany. Its major foreign operations include T-Mobile USA.
Blackstone said it had acquired the interest because it believed the market outlook for Deutsche Telekom was rosy. Stephen Schwarzman, the chief executive of Blackstone Group, said Telekom had "a strong management" and good opportunities in the market.
Subject: German news