FRANKFURT, June 7 Small shareholders at Deutsche
Telekom have largely shunned a proposed dividend to
be paid in shares, which the telecom operator has proposed to
save cash it needs for investment.
Less thank 5 percent of the 800,000 Deutsche Telekom
shareholders that are served by German securities service dwp
Bank have asked for a dividend payment in shares, a spokesman
for the bank said on Friday.
He could not say how many shares were held by the retail
investors that have opted for a stock dividend.
The former German monopoly, which wants to preserve cash as
it plans to invest 6 billion euros ($7.9 billion) in the next
three years in broadband, has given its shareholders the option
to take the 2012 dividend of 0.70 euros per share in stock or in
Deutsche Telekom will give a breakdown on Monday of the
number of shareholders preferring cash to payment in shares.
A Deutsche Telekom spokesman declined to comment on the
result ahead of Monday's statement but said the company has
about 1.6 million shareholders, including institutional
As an incentive to take the stock, Deutsche Telekom is
offering the payout in new shares priced at a 2 percent
For every 12.5 shares held prior to the dividend approval on
May 16, shareholders who choose not to take cash can receive one
Earlier this week the German state said it wanted the cash
dividend on its 14.96 percent stake in the company.
If all shareholders were to opt for cash payments, it would
cost the company around 3 billion euros.
Deutsche Telekom has cut its dividend for the next two years
by almost a third to an annual 0.50 euros per share.
($1 = 0.7579 euros)
(Reporting by Alexander Huebner, writing by Harro ten Wolde;
Editing by Elaine Hardcastle)