Shareholders criticise Telekom T-Online takeover

26th April 2005, Comments 0 comments

26 April 2005, HANOVER - Small-time shareholders on Tuesday sharply criticised Deutsche Telekom for its buyout bid for the internet provider T-Online in which the telecom giant was offering only about one-third of the launching price.

26 April 2005

HANOVER - Small-time shareholders on Tuesday sharply criticised Deutsche Telekom for its buyout bid for the internet provider T-Online in which the telecom giant was offering only about one-third of the launching price.

Telekom had previously offered a cash payment of EUR 8.99 plus 0.52 Telekom shares for every T-Online share. When T-Online was launched in the spring of 2000, the shares sold at EUR 27.

"Your move poses a danger to the shareholding culture in Germany," said Lars Labryga of the small-time shareholders lobby group SdK at Telekom's annual general meeting. He said T-Online investors had been plundered.

Carsten Heise, head of the DSW shareholders lobby group, called the Telekom offer "unfair" and the "absolute minimum".

Earlier, Telekom chief executive Kai-Uwe Ricke said that integrating T-Online into the parent concern is the core element in the revamping of the company's business strategy.

By grouping the internet provider activities with those of the broadband and fixed networks, Telekom will be strengthening its customer base and countering the decline in conventional telephone business, Ricke said.

DPA

Subject: German news

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