EU Says Hasn't Cleared Deutsche Telekom Buy Of Eurotel

BRUSSELS (Dow Jones)--The European Union Commission Friday retracted a statement made earlier that it had cleared Deutsche Telekom AG's (DT) purchase of the remaining 49% stake in Slovak mobile operator Eurotel.

In a statement, the E.U. Commission said the deal "was not cleared, but the notification declared incomplete."

Deutsche Telekom must now file a new request for antitrust clearance. E.U. regulators will then have one month to decide whether to clear the deal or subject it to an in-depth investigation.

Deutsche Telekom is paying EUR250 million to gain full control over Eurotel. The 49% stake currently is held jointly by AT&T Wireless Services Inc. (AWE) and Verizon Communications (VZ).

EuroTel Chairman Michael Guenther has said the deal is "an essential prerequisite to extend the successful cooperation between EuroTel and T-Mobile International AG (TMO.YY) to see greater growth opportunities."

The deal would enable Deutsche Telekom to integrate the Slovak cellular service into its T-Mobile offering. It would also enable Eurotel to better compete against rival Orange Slovakia, controlled by France Telecom (FTE).

EuroTel is the second-largest mobile phone operator in Slovakia, with 1.7 million subscribers.

-By Steve de Bonvoisin, Dow Jones Newswires; +32-2-285-01-37; steve.debonvoisin@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 29th October 2004