Deutsche Telekom: Any Sistema Deal on Deutsche's Terms

FRANKFURT, Nov 9 (Dow Jones) -- If Germany's Deutsche Telekom AG were to strike a deal with Russian conglomerate AFK Sistema, it would be on terms set by Deutsche Telekom, a company spokesman told Dow Jones Newswires Thursday.

Separately, a person familiar with the matter told Dow Jones Newswires that an approach from Sistema had been rejected.

Earlier this month it was reported that Sistema had approached Deutsche Telekom with a proposal for an asset swap. Deutsche Telekom however declined to comment on the report.

According to market speculation, Sistema may team up with the U.S.-based investment firm Blackstone Group, which already holds 4.5% in Deutsche Telekom, to buy a larger stake.

The person familiar with the matter said however that Blackstone seems pleased with the Deutsche Telekom's performance. At Deutsche Telekom, the understanding is that Blackstone supports the company's Chief Executive Kai-Uwe Ricke, the person said. At a supervisory board meeting ahead of the nine-month results announcement, the Blackstone representative "was very pleased with the company's mid-term targets," the person said.

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Posted to the site on 9th November 2006