German telecom giant Deutsche Telekom AG (DTEGY.PK) is mulling to make two deals in Eastern Europe so that it can consolidate its position in the region, The Wall Street Journal reported, quoting several people familiar with the matter.
The company is said to be in discussions to acquire Warsaw-based broadband optical and IP network provider GTS Central Europe for about 600 million euros ($775.9 million). GTS is also a voice and data communications service.
GTS is owned by financial investors Columbia Capital, M/C Venture Partners, Innova Capital, HarbourVest Partners, Oak Investment Partners and Bessemer Venture Partners.
The timing of the deal and whether there are other interested parties is not clear.
According to the report, 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.
T-Mobile Czech Republic, with about 5.5 million subscribers, is the largest mobile telecommunication provider in the country. Deutsche Telekom is believed to be content with its 60.8 percent controlling stake, valued at 1.75 billion euros at the end of 2012.
Even as the German firm prefers another investor to buy Mid Europa Partners' stake, it may prefer to buy the stake itself if an unwanted suitor comes up.
The stock rose 0.5 percent on Monday to settle at 9.30 euros.
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