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D. Telekom sells Internet stake
FRANKFURT, Germany (CNN) -- Deutsche Telekom plans to sell 120 million shares in Europe's biggest Internet service provider T-Online as part of a deal to cut debt. Germany's former phone monopoly said on Monday it would start selling shares immediately and the price would be announced once the investment banks managing the sale had completed the sale. But Reuters said the company may sell shares at between 5.60 euros and 6.10 euros each. At the top end of the range, Deutsche Telekom could raise as much as 732 million euros. Europe's largest phone company hopes to reduce its 64 billion euros ($63.6 billion) debt mountain to about 50 billion euros by the end of next year. Its huge debt burden has already taken its toll with Ron Sommer quitting as chief executive as investors became disgruntled as his multi-billion dollar sending spree. New Chief Executive Kai-Uwe Ricke has pledged to trim the company's debt but does not plan to sell any more shares in T-Online and will not cut its stake below 51 percent. Deutsche Telekom (FDTE) will sell 100 million shares to institutional investors and may market another 20 million if there is strong demand. Once the sale is completed, Telekom's stake in T-Online will fall to 73.5 percent from 81.7 percent and the numbers of shares publicly traded will increase to 18.6 percent from 10.4 percent. T-Online (ATOI) shares jumped 5.4 percent to 6.48 euros in early Frankfurt trading on Monday. Deutsche Telekom, which first sold shares in T-Online to investors in April 2000 at 27 euros each, saw its stock rise 3.9 percent to 12.72 euros.
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