German Government May Reduce its Stake in Deutsche Telekom
Published on: 6th Feb 2014
Note -- this news article is more than a year old.
The German government is considering reducing its stake in Deutsche Telekom to cash in on the company's recent sharp share price rise. It would be the first sale by the government since 1996.
The government currently owns a 31.9 percent stake which is worth around EUR16 billion (USD22 billion).
Sources told Reuters that the state development bank KfW, which holds 17.4% of the shares had invited banks to make proposals for a share placement.
"Valuations are high, elections are done, MetroPCS deal is done. So all set," the source said, referring to MetroPCS's merger with Deutsche Telekom's T-Mobile.
A sale is still some way off, and is not expected until the middle of the year, assuming it even goes ahead.
Reducing the government's stake may also boost T-Mobile USA, which is still majority owned by Deutsche Telekom. Each transaction involving T-Mobile in the USA needs special regulatory clearance due to the German government's sizeable indirect stake in the US mobile network.
On the web: Reuters