logo
Share SHARE
FONT-SIZE Plus   Neg

WSJ: Deutsche Telekom Mulling Eastern European Operations Restructuring

German telecommunications giant Deutsche Telekom AG (DTEGY) is mulling the restructuring of its Eastern European operations in a bid to realign its footprint in the region, according to a Wall Street Journal report on Thursday. The move could even lead to the sale of non-core assets such as the company's 61 percent stake in T-Mobile Czech Republic.

However, CFO and deputy CEO Timotheus Höttges, who will take over as the new CEO on January 2014, may not be interested in selling the stake in order to maintain an international presence.

CEO René Obermann had announced in December 2012 his resignation with effect from December 31, 2013. The company then officially named Höttges to succeed Obermann, effective from January 1, 2014. Höttges was also named deputy CEO, effective January 2013.

Obermann is leaving Deutsche Telekom after 16 years, of which he spent seven at the helm of the company and 11 years as a member of the board of management.

Deutsche Telekom's management and supervisory boards is reportedly slated to meet in Poland next week to discuss and finalize a strategy. Among options, the company could buy a fixed-line operator to strengthen its position, or end up exiting Eastern European operations.

According to the WSJ in late May, the company was in talks on two deals in Eastern Europe to consolidate its position in the region.

The company was said to be in discussions to acquire Warsaw-based broadband optical and IP network provider GTS Central Europe for about 600 million euros or $775.9 million. GTS is also a voice and data communications service.

Deutsche Telekom could also come under pressure to buy the outstanding 40 percent stake of its T-Mobile Czech Republic unit. This holding was recently put up for sale by private-equity firm Mid Europa Partners.

However, T-Mobile Czech Republic, with about 5.5 million subscribers, is believed to be content with its 60.8 percent controlling stake, valued at 1.75 billion euros or $2.31 billion at the end of 2012. It is the largest mobile telecommunication provider in the country.

Bonn, Germany-based Deutsche Telekom is said to be rethinking its strategy in the Czech Republic as competition in the region is expected to intensify due to the anticipated entry of a fourth operator in the region.

On Frankfurt's Xetra, Deutsche Telekom shares closed Thursday's regular trading at 9.69 euros, up 0.13 euros or 1.33% on a volume of 10.84 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Travelers leaving Comic-Con International in San Diego last weekend were in for a rude shock after United Airlines said that comic books were banned in their checked luggage. United Airlines claimed it was a Transportation Security Administration or TSA-mandated rule for all airlines operating out of San Diego over this weekend. A Singapore-based startup wants to make cryptocurrencies like Bitcoin go mainstream and be available for everyday transactions. TenX has built an app that serves as a digital wallet connected to the Visa card. The debit card will instantly convert multiple digital currencies into fiat money such as the dollars, yen and euros. Automaker General Motors Co. reported Tuesday a decline in its second-quarter profit on charges and weak vehicle sales. North America and International Operations reported lower volume, partly offset by growth in South America. The company further said it is on track to meet financial commitments for 2017.
comments powered by Disqus
Follow RTT