Prosecutors drop case against Telekom managers

2nd June 2005, Comments 0 comments

2 June 2005, BONN - In a setback to shareholders, German public prosecutors announced on Thursday they have dropped their case against top managers of the telecommunications giant Deutsche Telekom over its reporting of real estate assets.

2 June 2005

BONN - In a setback to shareholders, German public prosecutors announced on Thursday they have dropped their case against top managers of the telecommunications giant Deutsche Telekom over its reporting of real estate assets.

The Bonn prosecutor's office said the investigation of six Telekom managers was being suspended in a case going back several years and concerning Telekom's valuation of its real estate holdings in the mid to late 1990s.

Shareholders, stung by Telekom shares' loss in value after the company's IPO launch in late 1996, had accused the company of fraudulent reporting on the value of its real estate assets for the years 1995, 1996 and 1997.

The prosecutor's office said that it had fined the six managers between EUR 20,000 and EUR 250,000.

Telekom has declared its readiness to pay EUR 5 million to a charitable cause.

DPA

Subject: German news

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